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State Tax Deduction

3484 Views 4 Replies 5 Participants Last post by  barryaz1
I'm new to this board. I just bought a shiney new Prius yesterday and drove to the beach and back on one gallon of gas (60 miles). Cool!

I had a question someone might know about - I am clear about the federal $2K tax deduction, but I have read that your individual state may also have a deduction. Now everything I've read says 'consult your tax advisor' for details. I'm not thinking for one minute that the guy in H&R block will have any clue about anything! :( I also usually file online without a 'tax advisor' so I'm not sure that I would want to pay a large amount to a 'tax advisor' only to discover that there is no state deduction!

Does anyone know of a webpage with a state by state list of deductions, or failing that, does anyone know if there are any deductions available for the state of Georgia. I've looked at the 'Official' Georgia tax site and its full of the usual 'legalspeak' gobbledegook.

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state by state hybrid program lists

Hi Georgia,
Be aware that some states require that you apply BEFORE you buy the car.
Some states do the tax deduction, others the tax credit, and others have a separate grant program.

From a brief glance it looks like $2500 credit for you for buying a low emission vehicle, your lucky day. Congratulations. (But make sure to read the fine print.)
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I hope the information on that yournextcar site is more complete for other states than it is for Pennsylvania, where one can apply, in advance of purchasing your HEV, for a $1,500 grant under the Alternative Fuels Incentive Grant Program. Details from Karen Miller, grant officer, at 717-772-3359 or by email at [email protected].
State Tax Credit

I resent the comment about H &R Block as I work part time for them and am very knowledgeable about my state tax laws. I can’t answer your question specifically because I do not live in your state, but here is some general information.

The federal deduction is called “Above the Line” because it is deducted from income prior to figuring your Adjusted Gross Income (AGI). You do not need to itemize to take this deduction. If your state uses the federal AGI (as mine does) as a starting point you will get the deduction since it was taken prior to computing the AGI. One caveat is that states can require you to add some items back into the federal AGI. If you are not knowledgeable about your state laws you should consult a tax professional to find out if your state requires you to add this back in. H & R Block will probably answer this question for free if you give them a call.
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While this site is generally about renewable energy, I have seen it list some information about AFV credits and deductions:

Hope this helps!
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