Automakers appear to have help on the way as several industry incentives appear to have survived the final $789 billion stimulus bill. The controversial bill includes a tax break for new car buyers, $300 million for hybrid-powered government vehicles and a forgiveness of the $7 billion tax bill General Motors got hit with when it accepted $9.4 billion in government loans.
One part of the bill did receive a significant amount of cuts, with the $11 billion plan for tax cuts for new car buyers cut down to $5 billion. The provision originally made sales tax and interest deductible on auto loans of up to $49,500, saving the buyer of a $25,000 car about $1,500. With the cash set aside for the provision cut by more than 50%, the savings will likely be much different, and the maximum vehicle price will likely be cut as well. Barring any last minute changes, President Obama is hoping to sign the bill into law by Monday.

[Source: Detroit News]


From Our Partners

You May Like
Links by Zergnet
Share This Photo X