New Bill Seeks to Boost Car Sales Through Tax Credit Grants

U.S. Reps. Don Manzullo (R-IL) and Fred Upton (R-MI) have introduced legislation to stimulate the economy and create jobs by giving Americans tax incentives to purchase cars and trucks.

The title of the bill is “To amend the Internal Revenue Code of 1986 to allow individuals and businesses a temporary credit against income tax for the purchase of certain vehicles,” but is otherwise known as the “The Get America Moving Again Act of 2009” (H.R. 550).

The proposed legislation seeks to bolster American manufacturing and spur vehicle sales and production by giving Americans tax credits of $5,000 to purchase a new vehicle and $2,000 to purchase a used vehicle through Dec. 31, 2009. The tax credits would be cut in half in 2010 and expire on Dec. 31, 2010. The tax credits would be limited for vehicles that cost under $50,000 and would only be allowed for households with an adjusted gross income of $250,000 or less.

According to Rep. Upton, the automobile industry and its suppliers account for 13 million American jobs, 20 percent of all U.S. retail sales, and billions of dollars in state and local sales taxes. The drop in U.S. vehicle sales from 16.2 million in 2007 to 10.5 million in 2008 removed $175 billion directly from our economy and has been one of the leading causes of America’s economic downturn and huge job losses, Upton explained in justifying the filing of the legislation.

After the bill was introduced on the congressional floor on January 15, 2009, members of Congress referred it to the Committee on Ways and Means for study and deliberation.

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