Congressman Andrews Announce New Tax Break on Auto Purchases and its Direct Economic Impacts 

Berlin, NJ - On Monday, March, 23, Congressman Rob Andrews visited Berlin Chrysler, Inc. to announce a new provision under the American Recovery and Reinvestment Act designed to boost auto sales and stimulate the economy. Specifically, this provision allows purchasers to deduct state, local, sales and excise taxes on their federal returns on new cars, light trucks, motor homes and motorcycles purchased between February 12 and December 31, 2009. This tax break applies to individual taxpayers whose adjusted gross income is less than $125,000 per year and joint-filers whose combined adjusted gross income is less than $250,000 per year.

As our economy continues to worsen and U.S. auto sales are at a 27-year low, this tax break will provide necessary relief to both auto customers and dealerships throughout the country. While this bill makes it easier for shoppers to return to the showroom floors to purchase new vehicles, the dealerships themselves will receive a much-needed increase in sales. With the increase in sales, dealerships will be able to invest more money into expanding their businesses and generating more jobs, which will provide for more long-term economic growth. As an additional effort to assist our domestic auto industry during the current economic crisis, Congressman Andrews supported an emergency bridge loan to rebuild the automotive industry and help preserve the millions of jobs that are stake.

"It is vital to the American economy to ensure that the American auto industry survives," said Congressman Andrews. "One in ten American jobs relates directly to auto manufacturing and we need to do everything we can to keep them employed."
 
Congressman Andrews continues to support legislation like the American Recovery and Reinvestment Act, which provides millions of Americans with a new tax break on automobile purchases, as an effort to set the American economy back on the course of long-term growth through preserving and generating jobs within the automotive industry and stimulating consumer spending.

Return to the Washington Updates Page