Sales Tax Deduction

• North Carolina does not charge sales tax when you purchase a car, instead you pay a 3 percent highway use tax. If you purchased a vehicle between January 1, 2009 and December 31, 2010, you can deduct the highway use tax and any registration fees you paid from your taxes.
  
  

Hybrid Vehicle Tax Credit

• If you purchased a qualified hybrid vehicle, defined by the Internal Revenue Service as having a drive train powered by both an internal combustion engine and a rechargeable battery, and you purchased your car before December 31, 2010, you may be eligible for a tax credit for that car. This must be a car that the manufacturer certifies is eligible for the credit. The amount of the credit depends on the number of vehicles the manufacturer sold, as of the date you bought your car.
  
  

Fuel Cell Tax Credit

• If you purchased a car powered by a fuel cell, defined by the IRS as a vehicle that is powered by one or more cells that convert chemical energy into electricity, you may qualify for the tax credit if it was purchased before December 31, 2010. The amount of the credit is based on the weight of the vehicle. An additional amount can be taken depending on the rated fuel economy of the fuel cell vehicle.
  
  

Amended Returns

• As these tax credits expired, or if you didn't claim then on your 2009 or 2010 income tax returns, you didn't lose out. At the time of publication you can still file an amended return to claim the credits or the tax deduction. You can amend your return up to three years after it was originally due. If you amend your return, remember that a tax deduction only gains you about 25 cents off for every dollar you owe in taxes, but a tax credit reduces your tax liability dollar for dollar.