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| Washington Office |
233 Cannon HOB
Washington, DC 20515
(202) 225-2305
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| | District Office |
510 East Foothill Boulevard
Suite 201
San Dimas, CA 91773
Office (909) 575-6226
Toll Free (888) 906-2626
Fax (909) 575-6266
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- Privacy Policy - |
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The Commonsense Auto Recovery (CAR) Act
- While the current lack of demand is impacting retailers of all sectors, it has been particularly detrimental for the auto industry. As consumers wait to make purchases, new and used cars sit in lots across the country.
- While recent debates have focused on the role of the domestic automobile manufacturers, the lack of car sales has also had a significant impact on the dealerships, auto-parts makers and financers that are part of the auto industry and rely on automobile sales.
- Any proposal that seeks to address the challenges in the auto sector cannot simply focus on the manufacturing side. Sales of automobiles play an equal, if not more important role in sustaining the automobile industry.
- The Commonsense Auto Recovery (CAR) Act is based on the idea that consumers as well auto manufacturers, dealers, parts makers and financiers can benefit from the implementation of a short-term economic incentive to purchase a car.
- The bill specifically provides a new, temporary tax credit for 2009 and 2010 in the amount of state and local sales taxes paid on the purchase of a vehicle. This credit will help boost demand and provide an economic stimulus that will reduce the excess inventory of unsold cars in the United States.
- To ensure that the credit has a maximum effect, it is available for the purchase of both new and used automobiles and can be exercised by individuals as well as small businesses of 50 employees or less.
- Finally, so that the credit cannot be abused, the CAR Act stipulates that the credit is applicable only to the state and local sales taxes paid on the first $50,000 of a purchase. Any sales taxes paid above this threshold cannot be used toward the credit.
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