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Stimulus: the car thingie
February 13, 2009
I'm remiss in not mentioning the fate of the proposed deduction for interest and sales tax on new cars in the conference version of the stimulus monstrosity. Originally proposed as an above-the-line deduction for interest and taxes on new autos, it is now cut back to a deduction for sales and excise taxes only (still above the line). It applies to new vehicles weighing up to 8,500 lbs (helping to move that Hummer inventory), motorcycles and motor homes (Remember, if you live in the motor home, you can deduct the interest, too!). for calendar-year taxpayers, it applies to 2009 purchases.
Like so many lame tax breaks, it phases out at higher income levels - starting at $125,000 for unmarried filers and $250,000 for joint filers. It doesn't apply to any part of the the taxes attributable to a purchase price over $49,500.
Oh, and The TaxProf reports that the House has passed the bill, 246 Ds v. 176 Rs and 7 Ds. It's now in the hands of the Senate Jellyfish Caucus.
UPDATE, 3:45 p.m.: C-span says Senate vote slated for 4:30 pm Central. Will the Jellyfish hold together?
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