If you're in the market for a new car and call West Virginia home, file by April 15th and a tax credit may be coming your way with the right type of car.
We checked it out and sure enough it's worth a $7,500 deduction on your state taxes.
CPA Bob Astorg of Astorg and Koreski says if you want to get the $7500 credit, trade cars and get one that can burn e85 fuel. It helps on emissions and is cheaper to buy, but he doesn't think the legislature knew how much it could cost the state in tax revenue.
“Because that's where this tax credit comes from," he says. "It comes from the income tax, which funds the general revenue fund, so that's why the legislature moved just recently to do away with that credit.”
Astorg says you get a tax credit on your West Virginia income tax return of 35 percent of the cash difference you pay between your trade in and your new car with a maximum of $7500.
If you bought a car in 2011 or re-filed your 2012 return and traded cars for one that burns e85, then you can file it on your return.