Buying a new car just got a little less expensive in states without sales tax. The U.S. Treasury just expanded its policy of allowing a tax break on new car purchases equal to the amount new car buyers pay in sales tax to states without sales tax. In those states, which include Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon, new car buyers may deduct the equivalent amount of sales tax they would have paid from their 2009 income tax.

The new break comes as a revision to the American Recovery and Reinvestment Act of 2009 which, according to deputy treasury secretary Neal Wolin, offers a two pronged benefit by stimulating new car purchases and putting some money back in the pockets of taxpayers. Under the Recovery Act, buyers can take the deduction if the purchase of their new car occurred after Feb. 16, 2009 and before Jan. 1, 2010.

Claiming the tax break does not require that you itemize your deductions. Some limitations apply however, in that the deduction can be taken for up to $49,500 of the purchase price. Anyone making between $125,000 and $135,000 may not make the deduction. For joint filers making between $250,000 and $260,000 do not qualify as well. Nonetheless, this provision will save new car buyers approximately $1.7 billion.