[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 385 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 385

To amend the Internal Revenue Code of 1986 to provide tax incentives to 
 consumers and lenders for the purchase of a passenger vehicle during 
                                 2009.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 9, 2009

   Mr. Rogers of Alabama (for himself, Mr. Pascrell, Mr. Cantor, Mr. 
 Campbell, Mr. Aderholt, Mr. Bachus, Mr. Westmoreland, Mr. Tiberi, Mr. 
    Bonner, Mr. Davis of Alabama, and Mr. McCotter) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide tax incentives to 
 consumers and lenders for the purchase of a passenger vehicle during 
                                 2009.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Auto Relief Act of 2009'' 
or the ``CAR Act of 2009''.

SEC. 2. TAX INCENTIVES TO CONSUMERS AND LENDERS FOR THE PURCHASE OF A 
              PASSENGER VEHICLE DURING 2009.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions for individuals) is amended by redesignating section 224 as 
section 225 and by inserting after section 223 the following new 
section:

``SEC. 224. INCENTIVES TO CONSUMERS AND LENDERS FOR THE PURCHASE OF A 
              PASSENGER VEHICLE DURING 2009.

    ``(a) Deduction for Consumer Purchases.--In the case of an 
individual, there shall be allowed as a deduction an amount equal to 
the purchase price of any qualified vehicle placed in service by the 
taxpayer during the taxable year.
    ``(b) Dollar Limitations.--The deduction allowed by subsection (a) 
with respect to each qualified vehicle shall not exceed--
            ``(1) $7,500 if such vehicle is placed in service during 
        the 90-day period beginning on the date of the enactment of 
        this section,
            ``(2) $5,000 if such vehicle is placed in service during 
        the 90-day period beginning on the day after the period 
        described in paragraph (1), and
            ``(3) $2,500 if such vehicle is placed in service after the 
        period described in paragraph (2).
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified vehicle.--
                    ``(A) In general.--The term `qualified vehicle' 
                means a motor vehicle which is a passenger automobile 
                or a light truck--
                            ``(i) the original use of which commences 
                        with the taxpayer,
                            ``(ii) which is acquired for use or lease 
                        by the taxpayer and not for resale,
                            ``(iii) which is made by a manufacturer, or
                            ``(iv) which is placed in service by the 
                        taxpayer on or after the date of the enactment 
                        of this section and before January 1, 2010.
                    ``(B) Exceptions.--Such term shall not include--
                            ``(i) property referred to in section 
                        50(b)(1) (relating to property used outside the 
                        United States), or
                            ``(ii) property of a character subject to 
                        the allowance for depreciation or amortization.
            ``(2) Motor vehicle.--The term `motor vehicle' has the 
        meaning given such term by section 30(c)(2).
            ``(3) Other terms.--The terms `passenger automobile', 
        `light truck', and `manufacturer' have the meanings given such 
        terms in regulations prescribed by the Administrator of the 
        Environmental Protection Agency for purposes of the 
        administration of title II of the Clean Air Act (42 U.S.C. 7521 
        et seq.).
    ``(d) Deduction for Consumer Loans To Purchase Qualified Vehicles; 
Exclusion From Lender's Gross Income.--In the case of interest on any 
loan secured by a qualified vehicle and used by the purchaser to 
purchase such vehicle--
            ``(1) such interest shall not be treated as personal 
        interest for purposes of section 163(h), and
            ``(2) the gross income of the lender shall not include 50 
        percent of such interest received or accrued on such loan 
        during the taxable year.
    ``(e) Deduction for State and Local Sales Taxes.--In the case of a 
purchase of a qualified vehicle, there shall be allowed as a deduction 
the amount of general sales taxes (within the meaning of section 
164(b)(5)) paid or incurred during the taxable year on such purchase.
    ``(f) Special Rules.--
            ``(1) Reduction in basis.--For purposes of this subtitle, 
        the basis of any property for which a deduction is allowable 
        under subsection (a) shall be reduced by the amount of the 
        deduction so allowed.
            ``(2) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any deduction allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such deduction (including recapture 
        in the case of a lease period of less than the economic life of 
        a vehicle).''.
    (b) Deductions Allowed Whether or Not Taxpayer Itemizes Other 
Deductions.--Subsection (a) of section 62 of such Code is amended by 
inserting after paragraph (21) the following new paragraph:
            ``(22) Deductions relating to purchase of passenger vehicle 
        during 2009.--The deductions allowed by subsection (a), (d), 
        and (e) of section 224.''.
    (c) Conforming Amendments.--
            (1) Subsection (a) of section 1016 of such Code is amended 
        by striking ``and'' at the end of paragraph (36), by striking 
        the period at the end of paragraph (37) and inserting ``, 
        and'', and by adding at the end the following new paragraph:
            ``(38) to the extent provided in section 224(f)(1).''.
            (2) The table of sections for such part VII is amended by 
        redesignating the item relating to section 224 as relating to 
        section 225 and by inserting after the item relating to section 
        223 the following new item:

``Sec. 224. Incentives to consumers and lenders for the purchase of a 
                            passenger vehicle during 2009.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending on or after the date of the enactment of 
this Act.
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