As President Obama’s stimulus plan approaches the $1 trillion mark, Congressional allies of the automotive industry are attempting to push several different tax incentives into the mix. Yesterday we reported on a tax break that the Senate voted into the stimulus bill, which allows individuals making less than $125,000 or couples making less than $250,000 to deduct up to $1500 off the first $49,000 of a new vehicle’s price. Now, Michigan Senator Debbie Stabenow and Iowa Democrat Tom Harkin are introducing another plan.
The new plan is a version of the “cash-for-clunkers” idea that has been floating around Washington recently. Owners of “old vehicles” (what qualifies as old?) could get up to $10,000 to spend toward new cars or trucks that are “U.S.-made” (again, what qualifies?) and achieve better fuel economy. Families making more than $75,000 would not qualify for the benefits.
Specifics about the bill are scarce. It would be introduced as an amendment to Obama’s stimulus plan, which at the time of this writing costs approximately $900 billion.
Source: Detroit Free Press