President Barack Obama last week signed into law the $787 billion economic stimulus package that includes incentives for new vehicle purchases that have dealerships hopeful for the future.

"I'm really excited because it's one more opportunity for consumers to save some money," said Corina Diehl of Diehl Automotive in Butler Township.

Provisions of the American Recovery and Reinvestment Act of 2009 for buying vehicles include:

n Deductions for state and local sales and excise taxes paid on the purchase of new cars, light trucks, recreational vehicles and motorcycles through 2009.

• Deductions are limited to the tax on up to $49,500 of the purchase price of an eligible motor vehicle.

• Deductions available to joint income tax filers with modified adjusted gross income below $250,000 and other taxpayers with modified adjusted gross income below $125,000.

• The deduction is available regardless of whether or not taxpayers itemize deductions on their taxes.

• The tax credit for purchasing plug-in hybrid vehicles was increased to $7,500.

"We are getting people walking in the door asking for copies of the stimulus package," Diehl said. "It's an opportunity for anyone who was holding back (on buying a new vehicle) to save an average of $500, $600, $700."

Cathy Glasgow of Butler County Ford in Butler said the stimulus package overall is a good thing, but customers still are confused by it.

"I think people are cautiously optimistic about it," Glasgow said. "People are afraid they're going to lose their jobs. A lot of them really want to do this, but they're not sure."

Business is expected to pick up as more people understand the tax breaks and as the temperature rises, Glasgow said.

"The good perfect storm," she called the coming better weather and the tax benefits.