Rogers' CAR Act Could Stimulate Economy

Press Release

Rogers' CAR Act Could Stimulate Economy

With unemployment rising and the nation's economy in recession, Congressman Mike Rogers introduced the H.R. 385, the Consumer Auto Relief (CAR) Act, today to help everyday Americans purchase a new vehicle through targeted tax breaks after the purchase. Rogers says he is hopeful a version of the bill could be included in President-elect Obama's new economic stimulus bill which should be debated in coming weeks.

"With the state of our economy and consumer confidence at the lowest point in years, my hope is that this bill could help give folks who need a new vehicle an incentive to go out and purchase one with tax benefits. The bill also gives incentives for lenders to loan the money to folks buying the new cars," Rogers said.

The bill breaks down into three 90-day periods of Federal tax deductions after enactment of the bill. During the first 90 days, consumers would receive a $7,500 Federal tax deduction, the second 90 days a $5,000 deduction and the third 90 days a $2,500 deduction. It would also make 100 percent tax deductible interest and state and local taxes paid on the purchase in 2009.

Lenders would also get a break with a 50 percent deductibility of earnings on all new consumer car loans during this nine month period.

"Congress needs to find creative ways to help stimulate our economy. With so many Alabamians now employed in the automotive industry, this bill could help protect our jobs by encouraging demand while also helping struggling families afford a new vehicle when they may really need one," Rogers added.

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