Autoblog

How Washington's fiscal cliff deal helps NASCAR and electric motorcycles

Jeffrey N. Ross — Thu, 03 Jan 2013 16:31:00 EST

Filed under: Government/Legal, Earnings/Financials, Motorcycle, Racing

With the so-called fiscal cliff looming like a New Year's Day hangover, US lawmakers were able to strike an eleventh-hour deal that should prove beneficial to couples making less than $450,000 a year. Like any piece of US legislation, though, there was enough pork stuffed inside to ensure lobbyists and well-connected constituents remain happy. As a part of the deal, a few tax credits were extended that pertain to the automotive world.

On one hand, a 2009 tax credit was extended for electric motorcycles and scooters that gives buyers a break of up to 10-percent of the purchase price (up to $2,500). However, the deal also removed vehicles like golf carts from qualification. Another consequence of the fiscal cliff deal was that numerous biofuel tax credits were extended - our sister site, AutoblogGreen, broke the specifics down yesterday.

More unexpected is word that NASCAR track owners also benefited from the last-minute legislation with a huge tax break extension. The break, which allows track owners to deduct their facilities' deprecation over seven years (instead of the normal 39-year government estimate), will reportedly cost taxpayers more than $40 million per year. The NASCAR tax break was originally made law back in 2004, and was later extended under the TARP bailout package in 2008. CNN notes that the motorsports provision applies to the depreciation of facilities that hold at least seven days of racing each year, seat at least 70,000 fans and have concession stands that somehow benefit charitable organizations.

How Washington's fiscal cliff deal helps NASCAR and electric motorcycles originally appeared on Autoblog on Thu, 03 Jan 2013 16:31:00 EST. Please see our terms for use of feeds.

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Report: $33M in EV tax credits went to buy unqualified vehicles

Sebastian Blanco — Fri, 04 Feb 2011 18:28:00 EST

Filed under: Car Buying, Government/Legal

Is a bicycle an electric vehicle? How about a Hummer H3? These are some of the things that Americans claimed were hybrids, alternative-powered or plug-in electric vehicles on their tax forms, reports USA Today. What's more, the false claimants managed to get $33 million back from the federal government. According to the daily, $33 million is about 20 percent of the $163.9 million total that has been claimed under the tax credit programs so far.

The information comes from a new report, published by the Treasury Inspector General for Tax Administration (read the full report in PDF), which found that the problem lies with the IRS, which apparently doesn't have the "adequate procedures" required to ferret out which claims qualify and which don't. The IRS responded by saying it, "has already implemented measures to address some of the problems highlighted in the report." Okay, that's all somewhat understandable, but a getting money back for a bicycle? We love bikes, seriously, but we're pretty sure that they're not cars...

[Source: USA Today | Image: General Motors]

Report: $33M in EV tax credits went to buy unqualified vehicles originally appeared on Autoblog on Fri, 04 Feb 2011 18:28:00 EST. Please see our terms for use of feeds.

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Senator calls for tax incentives on all new-car sales

Dan Roth — Wed, 12 Nov 2008 18:32:00 EST

Filed under: Car Buying, Etc., Government/Legal

When automakers are throwing thousands of dollars of incentives on the hoods of their wares in an effort to stimulate sales, what good would another $1,500 on a $25,000 car do? As the recent sales numbers show, buyers aren't being taken in by the constant sounding of the "SELL SELL SELL!" klaxon. Great deals on new cars are out there to be had, if only anyone had some money.

Senator Barbara Mikulski of Maryland thinks that the economic panic can be partially abated by allowing buyers of new vehicles to deduct auto loan interest, fees, and sales tax related to the purchase of a new car from their income tax. The proposed initiative would run from now through the end of 2009, and is only for families earning less than $250,000, or individuals making $125,000. Hey, nobody is really going to complain about getting a tax break, but it seems that buyers have already shown that they're wary, even with fantastic deals to be had.

[Source: Kicking Tires]

Senator calls for tax incentives on all new-car sales originally appeared on Autoblog on Wed, 12 Nov 2008 18:32:00 EST. Please see our terms for use of feeds.

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