HR 385 IHCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide tax incentives to consumers and lenders for the purchase of a passenger vehicle during 2009.CommentsClose CommentsPermalink

January 9, 2009CommentsClose CommentsPermalink

Mr. ROGERS of Alabama (for himself, Mr. PASCRELL, Mr. CANTOR, Mr. CAMPBELL, Mr. ADERHOLT, Mr. BACHUS, Mr. WESTMORELAND, Mr. TIBERI, Mr. BONNER, Mr. DAVIS of Alabama, and Mr. MCCOTTER) introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide tax incentives to consumers and lenders for the purchase of a passenger vehicle during 2009.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Consumer Auto Relief Act of 2009’ or the ‘CAR Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. TAX INCENTIVES TO CONSUMERS AND LENDERS FOR THE PURCHASE OF A PASSENGER VEHICLE DURING 2009.

(a) In General- Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to additional itemized deductions for individuals) is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section:CommentsClose CommentsPermalink

‘SEC. 224. INCENTIVES TO CONSUMERS AND LENDERS FOR THE PURCHASE OF A PASSENGER VEHICLE DURING 2009.

‘(a) Deduction for Consumer Purchases- In the case of an individual, there shall be allowed as a deduction an amount equal to the purchase price of any qualified vehicle placed in service by the taxpayer during the taxable year.CommentsClose CommentsPermalink





‘(b) Dollar Limitations- The deduction allowed by subsection (a) with respect to each qualified vehicle shall not exceed--CommentsClose CommentsPermalink





‘(1) $7,500 if such vehicle is placed in service during the 90-day period beginning on the date of the enactment of this section,CommentsClose CommentsPermalink





‘(2) $5,000 if such vehicle is placed in service during the 90-day period beginning on the day after the period described in paragraph (1), andCommentsClose CommentsPermalink





‘(3) $2,500 if such vehicle is placed in service after the period described in paragraph (2).CommentsClose CommentsPermalink





‘(c) Definitions- For purposes of this section--CommentsClose CommentsPermalink





‘(1) QUALIFIED VEHICLE-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘qualified vehicle’ means a motor vehicle which is a passenger automobile or a light truck--CommentsClose CommentsPermalink





‘(i) the original use of which commences with the taxpayer,CommentsClose CommentsPermalink





‘(ii) which is acquired for use or lease by the taxpayer and not for resale,CommentsClose CommentsPermalink





‘(iii) which is made by a manufacturer, orCommentsClose CommentsPermalink





‘(iv) which is placed in service by the taxpayer on or after the date of the enactment of this section and before January 1, 2010.CommentsClose CommentsPermalink





‘(B) EXCEPTIONS- Such term shall not include--CommentsClose CommentsPermalink





‘(i) property referred to in section 50(b)(1) (relating to property used outside the United States), orCommentsClose CommentsPermalink





‘(ii) property of a character subject to the allowance for depreciation or amortization.CommentsClose CommentsPermalink





‘(2) MOTOR VEHICLE- The term ‘motor vehicle’ has the meaning given such term by section 30(c)(2).CommentsClose CommentsPermalink





‘(3) OTHER TERMS- The terms ‘passenger automobile’, ‘light truck’, and ‘manufacturer’ have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.).CommentsClose CommentsPermalink





‘(d) Deduction for Consumer Loans To Purchase Qualified Vehicles; Exclusion From Lender’s Gross Income- In the case of interest on any loan secured by a qualified vehicle and used by the purchaser to purchase such vehicle--CommentsClose CommentsPermalink





‘(1) such interest shall not be treated as personal interest for purposes of section 163(h), andCommentsClose CommentsPermalink





‘(2) the gross income of the lender shall not include 50 percent of such interest received or accrued on such loan during the taxable year.CommentsClose CommentsPermalink





‘(e) Deduction for State and Local Sales Taxes- In the case of a purchase of a qualified vehicle, there shall be allowed as a deduction the amount of general sales taxes (within the meaning of section 164(b)(5)) paid or incurred during the taxable year on such purchase.CommentsClose CommentsPermalink





‘(f) Special Rules-CommentsClose CommentsPermalink





‘(1) REDUCTION IN BASIS- For purposes of this subtitle, the basis of any property for which a deduction is allowable under subsection (a) shall be reduced by the amount of the deduction so allowed.CommentsClose CommentsPermalink





‘(2) RECAPTURE- The Secretary shall, by regulations, provide for recapturing the benefit of any deduction allowable under subsection (a) with respect to any property which ceases to be property eligible for such deduction (including recapture in the case of a lease period of less than the economic life of a vehicle).’.CommentsClose CommentsPermalink





(b) Deductions Allowed Whether or Not Taxpayer Itemizes Other Deductions- Subsection (a) of section 62 of such Code is amended by inserting after paragraph (21) the following new paragraph:CommentsClose CommentsPermalink





‘(22) DEDUCTIONS RELATING TO PURCHASE OF PASSENGER VEHICLE DURING 2009- The deductions allowed by subsection (a), (d), and (e) of section 224.’.CommentsClose CommentsPermalink





(c) Conforming Amendments-CommentsClose CommentsPermalink





(1) Subsection (a) of section 1016 of such Code is amended by striking ‘and’ at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting ‘, and’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(38) to the extent provided in section 224(f)(1).’.CommentsClose CommentsPermalink





(2) The table of sections for such part VII is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 223 the following new item:CommentsClose CommentsPermalink





‘Sec. 224. Incentives to consumers and lenders for the purchase of a passenger vehicle during 2009.’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to taxable years ending on or after the date of the enactment of this Act.CommentsClose CommentsPermalink