Contact: Jessica Smith, (202) 228-5185
Kimberly Hunter, (202) 228-5258
Senate Approves Webb-Sponsored Tax Relief
Amendment for New Car Buyers
Measure Designed to Encourage Automotive Sales
On February 3, the US Senate approved an amendment cosponsored by Senator Jim Webb (D-VA) to the American Recovery and Reinvestment Act to provide tax incentives to new car buyers in order to bolster auto sales, save automotive industry related jobs, and generate revenue for state and local governments.
“Car sales this year are down 27%-- the biggest drop in sales in history,” said Senator Webb. “With more than 3 million jobs tied to the viability of the automobile industry, I sponsored this amendment in an effort to save American jobs and make car purchasing more practical during these difficult economic times.”
“Increased car sales will also raise much needed tax revenue for states and localities to help them weather the current economic recession,” continued Webb.
The Auto Assistance Ownership Amendment makes interest payments on car loans and state sales or excise car tax-deductible for new cars purchased between November 12, 2008 and December 31, 2009, which, in turn, will help more Americans afford cars and spur investment in America’s ailing automobile industry.
Individuals with incomes of up to $125,000 and couples earnings as much as $250,000 could qualify, including those who do not itemize their deductions. It is estimated that a couple would save approximately $1,553 on a new $25,000 car.
The measure, introduced by Senator Barbara Mikulski (D-MD), was passed by a vote of 71-26. It was also cosponsored by Senators Sam Brownback (R-KS), Debbie Stabenow (D-MI), Kay Bailey Hutchison (R- TX), Sherrod Brown (D-OH), Robert F. Bennett (R-UT) and Evan Bayh (D-IN).
