[Congressional Record (Bound Edition), Volume 153 (2007), Part 11]
[Extensions of Remarks]
[Page 15939]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     CLOSE ``HUMMER TAX LOOPHOLE''

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                          HON. EARL BLUMENAUER

                               of oregon

                    in the house of representatives

                        Thursday, June 14, 2007

  Mr. BLUMENAUER. Madam Speaker, today I am introducing legislation to 
close the ``Hummer Tax Loophole,'' which fixes a serious mistake in the 
Tax Code that provides an additional incentive for business purchases 
of luxury SUVs weighing over 6,000 pounds, such as the Hummer. This 
legislation is co-sponsored by my colleagues Ed Markey, Rahm Emanuel, 
and Allison Schwartz.
  The tax code allows small businesses to get a tax break for vehicles 
they use in business. In 1984, a limitation was put in place to make 
sure businesses didn't just buy luxury vehicles and write them off. 
These vehicles were described as under 6,000 lbs because, at that time, 
luxury vehicles over 6,000 lbs were not as pervasive. Today, there are 
many luxury SUVs that are more than 6,000 lbs, such as the BMW X5, the 
Hummer H1 and H2, and the Cadillac Escalade. Buying these vehicles 
entitles small businesses to an extra tax break, which constitutes the 
loophole.
  This legislation closes the Hummer Tax Loophole by applying the 
limitation that currently applies to vehicles under 6,000 pounds to 
those over 6,000 lbs. In other words, businesses will no longer have an 
incentive to buy the biggest, most gas guzzling SUV on the market. 
Legislative language and regulations would guarantee that the 
limitation not apply to trucks or vans used for legitimate business 
purposes, such as farm vehicles, fork lifts, cranes and derricks, 
school buses, flatbed trucks, cement mixers, and other vehicles as 
designated by the IRS.
  This bill will make sure that U.S. tax policy no longer encourages 
the purchase of the heaviest, most polluting, and least fuel-efficient 
vehicles for business use.

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