From today's paper:
"Price of gas hits lowest point in nearly 5 years
CAMARILLO, Calif. (AP) -- The average price of U.S. gasoline fell 22 cents a gallon during the past two weeks, bringing it to its lowest level in nearly five years, according to a national survey released Sunday.

The average price of regular gasoline Friday was $1.75 a gallon, oil industry analyst Trilby Lundberg said. The price of mid-grade was $1.90 a gallon and the price of premium was $2.02 a gallon.

The last time gas was cheaper was on March 2004, Lundberg said, when the national average for regular was $1.74 a gallon. The all-time high was on July 11, 2008, when the price peaked at $4.11 a gallon.

Of cities surveyed, the nation's lowest price was $1.46 in Cheyenne, Wyo. The highest was $2.54 in Anchorage, Alaska, and the highest in the continental United States was $2.10 on New York's Long Island."

Wyoming has cheap gas because they make it there. I'm happy for people who commute to work, but I'm afraid this will encourage people to go back to idolizing gas guzzlers.

In fact, in my recent propane bill was a flyer that says if you buy one of a selected group of General Motors gas hogs you will be eligible for an 'immediate $25,000 expense deduction on your federal taxes. In addition, the 2008 Economic Stimulus Act provides some significant additional tax depreciation benefits for eligible SUV, truck and van purchases in 2008.'

The vehicles eligible for the $25,000 deduction from this particular dealer: GMC Acadia, GMC Yukon and Yukon XL, GMC Envoy Denali, GMC Sierra Crew Cab (box length less than 6 feet), GMC Sierra Extended Cab (box length less than 6 feet).

The GMC vehicles eligible for up to $250,000 deduction are from this particular dealer: GMC Sierra (bed length over 6 feet), GMC Savana Cargo Van (seating for 9 behind the driver, or open in back), GMC Savana Passenger Van (seating for 12 or more), GMC Topkick.

I'm sure it also applies to Fords, and I found another dealer with the same info for various Chevrolet trucks including the Silverado, which is what I drive.

I'd never heard of the the Topkick. It is a commercial grade truck that sells for $27,000 to $41,000.



I remember back in 2003 there was a new IRS rule that gave tax advantages to business owners who bought large heavy vehicles. It was meant to help farmers, but resulted in those Hummers and giant SUVs you see in metropolitan areas with business advertising on the doors. A lot of small businesses go broke in the first couple of years because the owners indulge in luxuries on the assumption they are tax deductible so therefore almost free, but it's not a 100% return on the expense to take tax deductions.

What surprises me about this 2008 Economic Stimulus act provision, besides the fact I'd never heard of it, is that it is a form of a bailout for GM and Ford by encouraging people to purchase new vehicles during this troubled time for the domestic car makers. Because the available tax credit of $250,000 vastly exceeds the price of the vehicle, it looks like a big break for the taxpayer (not Joe the Plumber - he doesn't make that much this year, maybe next year when he buys that business), and the government is digging itself deeper into deficits but giving these tax breaks when it should be encouraging drivers to look for ways to conserve gasoline and prepare for the future when gas prices might go up again. (Remember all that whining and crying not six weeks ago when the book value on their SUVs was less than they owed on them?)

This reminds me of when we bought our hybrid vehicle last year. The salesman used the tax credit as his main selling point. Mr. Tbend: "the trunk is kind of small" Salesman: "But there is a $4500 tax credit." When it came time to claim that tax credit, however, it turned out it only applied to the first 16,000 units of that car model sold in the United States and by the time we bought ours it was no longer available. I don't totally blame the salesguy, because I think he didn't know this little requirement. What does he know? He just hangs around in the parking lot under a tree all day waiting for potential buyers to drive up.

So if I was in a position to need a new GMC/Chevy/Ford gas hog for my small business and thought it was a good time to buy because of this alleged tax deduction and the price of gas is down and they might be offering 0% financing, I would check it out before I take that test drive.