If you missed out on the government Cash for Clunkers rebate program a few months ago, you can still receive a tax deduction, by buying a new vehicle, before the end of the year. While this tax deduction won’t exceed the rebates offered during the Cash for Clunkers program, you’ll still have a chance to receive a large sum of your purchase back.

The American Recovery and Reinvestment Act of 2009, passed last February, allows all new car buyers to deduct the sales tax and other fees charged from the purchase of their vehicle after February 17th and before January 1st. The tax deduction can be added to the standard deduction, making it available even if you itemize your return. Plus, there is no limit to the number of vehicles you can claim under this deduction, as long as you purchase each vehicle before this deduction expires. There are some restrictions to this special tax deduction, so be sure to consult with a tax professional if you have any questions.

If you’re considering buying a new car this year, don’t miss this opportunity to increase your tax refund. Combined with low interest rates, high factory incentives and record trade-in prices, now is the perfect time to trade up to a new vehicle.