Auto Loan Savings from Stimulus

The federal government has been looking for ways to help all walks of people. There are those that will be assisted by small business loans, there are those that will get help through COBRA and other health care reform. And then there are those that will simply be rewarded for purchasing a car and getting an auto loan. The government wants it to be clear that they are all about rewarding those that are investing in the economy, and auto loans are a great way to do that and help the auto industry at the same time.

Now the government wants to be clear that if you cannot afford to take on a car loan that this economic stimulus is not going to change that for you. They say that there is not really enough money in it that would make it worthwhile to purchase a car. However, if you happen to be buying one anyway, it is a nice perk if passed.

The tax incentive would be for those people who purchase a car in 2009, whether or not they take out a new auto loan. The amount of the break would be determined by the price of the car, and eligibility would determine if you qualify. The break only applies to up to $49,500 of the price of the car, and you have to make less than $125,000 a year – unless you file jointly, then it is $250,000.

The Auto Ownership Tax Assistance Amendment has not yet been passed, but it has been introduced by Senator Barbara Mikulski. It would allow for a deduction from your taxes based on state and local sales and excise taxes. Most people would save between $300 and $600 on their taxes.







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