No it no longer exists and as I stated, it was a well intentioned idea that went array (typical) when accountants figured out to use it in a different manner than it was intentioned.

http://www.bankrate.com/brm/itax/biz_tips/20030403a1.asp

The furor all started a couple years ago when some sharp-eyed accountants and their professional clients discovered a glitch in the tax code that proved big enough to drive a Hummer through, tax free.

The tax provision's original intent back in the 1970s was to enable small farmers and self-employed workers to buy a truck or van without having to fork over the luxury car tax that was then in effect and has since expired. At the time, it made perfect sense to qualify the vehicles by weight because no luxury cars exceeded the 6,000-pound gross vehicle weight threshold.


>>Vehicles are mostly taxed based on their value (except for twenty states which don't do that).
>
>It may be gone now, but at one time your federal government had some tax clause that essentially made vehicles over a certain weight 'work' (i.e. business) vehicles (like trucks) and these had a much lower tax rate. It turned out that most of the bigger SUVs fit the qualification, making them cheaper than mid-to-larger sized cars.
>This was in effect until at least 3 years ago (and may still be so today).
>
>
>
>>
>>http://www.ncsl.org/programs/fiscal/autotaxs.htm
>>
>>
>>
>>>>>>Question: Do you have gasoline subsidized in USA?
>>>>>
>>>>>I don't :).
>>>>>
>>>>>Which doesn't mean that there aren't ways that people get subsidized in various ways to be able to spend more on large vehicles.
>>>>
>>>>If it isn't subsidized, then the people driving SUVs is paying more taxes than your regular Prius user....don't you think?
>>>
>>>The gas is too cheap here. And they ARE given a huge tax break the year they buy a new oversized vehicle, to the extent that it may come cheaper than a car.
>>>
>>>In many countries, the cars are taxed by engine size. Here, it's upside down.