Senate Vote Adds New-Car Tax Break to Stimulus Package
Calls from the auto industry to include some sort of incentive to lure new-car buyers back into the market were answered yesterday, as the U.S. Senate voted to incorporate a tax break for new-car buyers in President Obama’s stimulus package. Two plans were previously being considered.
Senator Barbara Mikulski, a Democrat from Maryland, spearheaded the attempt to allow new-car buyers to claim a tax deduction on sales taxes paid on new automobiles. The tax credit would apply to the first $49,500 of the price of a new car purchased between last November 12, 2008 and December 31, 2009, like the 2010 Honda Insight pictured above. Individuals making $125,000 or less and couples earning $250,000 or less would qualify, including those who don’t itemize deductions.
President Obama’s stimulus bill is still being debated as it makes its way to final passage. The newly added provision for new-car buyers could still be stripped from the bill at any time-and the bill may not pass in its current form regardless of whether the new-car tax break is added or not.
Source: The Detroit News