Pascrell Auto Ownership Tax Assistance Act Approved in Senate Economic Recovery Legislation
Rep. Bill Pascrell, Jr. (D-NJ-08) the sponsor of the Auto Ownership Tax Assistance Act today applauded Senate passage of the legislation in the form of an amendment to American Economic Recovery and Reinvestment Act:
"I applaud my Senate colleagues for approving smart tax incentives that will relieve consumers, boost the struggling auto industry and stimulate the economy. The staggering decline in auto sales has hurt the national economy and damaged local communities. Too many jobs have been lost, too many dealerships have been shuddered and too many cars are collecting dust on our docks and in lots. The tax deductions approved in the Senate are timely, targeted to the middle-class and will provide the temporary boost that America's retail economy so desperately needs."
The Senate amendment, introduced by Senator Barbara Mikulski (D-MD) follows the language of the Auto Ownership Tax Assistance Act. Under the legislation, sales tax and interest payments on car loans would become tax deductible retroactively from November 12, 2008 through January 1, 2010.
Tax deductions would be limited to financing at or below $49,500 and would only be available to individuals with an income less than $125,000 and families with a combined income of less than $250,000. The deductions are estimated to save a family about $1,320 on a $25,000 car.
"I look forward to working more with Senator Mikulski and Congressional leaders to ensure that this important provision is included in the final package that Congress presents to President Obama," concluded Pascrell.