An Alabama congressman has introduced a bill that would allow new car buyers to deduct up to $7,500 on their federal income taxes.
U.S. Rep. Mike Rogers of Saks said his legislation would make the tax break on new car purchases part of an economic stimulus package to be considered by Congress.
Rogers says the deduction would apply to people who buy new cars for personal use and not for business purposes. He says the $7,500 deduction would be available in the first three months after the proposal became law. The deduction would drop to $5,000 in the second three-month period and then to $2,500 for the last three months.
Rogers says he believes the deduction would encourage people to buy new cars and create more orders for car manufacturers.
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