Small business owners in the market for a new HUMMER or Cadillac Escalade can enjoy up to a $25,000 tax deduction because of a loophole that affects all vehicles weighing over 6,000 pounds. However, the opportunity might not be around for long if Congress members led by Oregon's Earl Blumenauer are able to pass a bill that's expected to be voted on by the House of Reps next month.

Under the new proposal, provisions for legitimate business use will remain, such as discounts for farm vehicles, vans, flatbed trucks and school buses. The original provision in the tax code was to aid farmers and small business owners purchasing heavy work vehicles to recover some of their costs, but this was before popularity of overweight luxury SUVs became widespread. Now the loophole is providing a tax break for small business owners wanting to purchase a luxury vehicle.

Understandably, carmakers and dealers are strongly opposed to any changes, regarding the new proposal as a tax increase for small business owners.

[Source: ABC News]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
  • 2015 Toyota Highlander
    MSRP: $29,765 - $44,140
    2015 Jeep Grand Cherokee
    MSRP: $29,995 - $64,895
    2015 Honda Accord
    MSRP: $22,105 - $33,630
    2015 Honda Civic
    MSRP: $18,290 - $26,740
    2015 Mazda Mazda3
    MSRP: $16,945 - $25,545
    Share This Photo X