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U.S. Senate Adds Auto Tax Break to Stimulus Package


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Editor's Note:So if you buy a zero interst new car deal, there is no tax benefit??? HUH!

Washington DC Februry 4, 2009; The AIADA newsletter reported that the U.S. Senate added a boost for automakers and car dealers to the economic-stimulus plan late Tuesday, which would create a tax deduction for the interest on a new-vehicle loan.

The proposal by U.S. Sen. Barbara Mikulski is now part of the $900-billion bill that Senate Democrats have vowed to hold a vote on before the end of the week. If they succeed in passing the bill, it will go to a round of negotiations with the U.S. House, which passed an $818-billion plan last week.

According to the Detroit Free Press, Mikulski's proposal would grant a tax credit for vehicles bought between Nov. 12 of last year and Dec. 31 of this year. The tax break would only go to families making less than $250,000 a year, and would only apply to interest on loans up to $49,500.

"Everyone wants to save auto manufacturers, but no matter how much government aid we give to the Big Three automakers, they can't survive if consumers don't start ewbuying cars," Mikulski said.

For more on tax breaks for car buyers, click here.