To amend the Internal Revenue Code of 1986 to provide a credit for the State and local sales taxes paid on the purchase of an automobile.

Summary: Commonsense Auto Recovery Act of 2009 - Amends the Internal Revenue Code to allow individuals and small employers a tax credit for state and local sales taxes paid on the purchase of a passenger motor vehicle (not more than two axles) the purchase price of which does not exceed $50,000. Terminates such credit after 2010.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Commonsense Auto Recovery Act of 
2009''.

SEC. 2. CREDIT FOR SALES TAX ON PURCHASE OF AUTOMOBILE.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 30D the following new section:

``SEC. 30E. SALES TAX ON PURCHASE OF AUTOMOBILE.

    ``(a) In General.--In the case of a qualified taxpayer, there shall 
be allowed against the tax imposed by this chapter for the taxable year 
an amount equal to the qualified State and local automobile sales taxes 
paid by the taxpayer with respect to the purchase of a qualified 
vehicle in such taxable year.
    ``(b) Limitation.--For purposes of subsection (a), the purchase 
price taken into account for purposes of determining qualified State 
and local automobile sales taxes shall not exceed $50,000.
    ``(c) Qualified State and Local Automobile Sales Taxes.--For 
purposes of this section--
            ``(1) In general.--The term `qualified State and local 
        automobile sales taxes' means any general sales tax in effect 
        on January 1, 2009, imposed on the purchase of a qualified 
        vehicle.
            ``(2) General sales tax.--The term `general sales tax' has 
        the meaning given such term by section 164(b)(5), determined 
        without regard to subparagraph (F) thereof.
            ``(3) Qualified vehicle.--The term `qualified vehicle' 
        means a motor vehicle (as defined in section 30(c)(2)) which 
        does not have more than 2 axles.
    ``(d) Qualified Taxpayer.--For purposes of this section--
            ``(1) In general.--The term `qualified taxpayer' means--
                    ``(A) an individual, and
                    ``(B) a person who employed an average of less than 
                50 employees on business days during the taxable year.
            ``(2) Controlled groups.--For purposes of paragraph (1)(B), 
        all persons treated as a single employer under subsection (b), 
        (c), (m), or (o) of section 414 shall be treated as a single 
        employer.
    ``(e) No Double Benefit.--The amount of the credit allowed under 
subsection (a) with respect to any vehicle shall be reduced by the 
amount of the deduction allowed under section 164 for such vehicle for 
the taxable year.
    ``(f) Election To Not Take Credit.--No credit shall be allowed 
under subsection (a) for any vehicle if the taxpayer elects not to have 
this section apply to such vehicle.
    ``(g) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Personal credit.--
                    ``(A) In general.--For purposes of this title, the 
                credit allowed under subsection (a) for any taxable 
                year (determined after application of paragraph (1)) 
                shall be treated as a credit allowable under subpart A 
                for such taxable year.
                    ``(B) Limitation based on amount of tax.--In the 
                case of a taxable year to which section 26(a)(2) does 
                not apply, the credit allowed under subsection (a) for 
                any taxable year (determined after application of 
                paragraph (1)) shall not exceed the excess of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the tax 
                        imposed by section 55, over
                            ``(ii) the sum of the credits allowable 
                        under subpart A (other than this section and 
                        sections 23 and 25D) and section 27 for the 
                        taxable year.
    ``(h) Termination.--This section shall not apply with respect to 
any property purchased after December 31, 2010.''.
    (b) Conforming Amendments.--
            (1)(A) Section 24(b)(3)(B) of such Code is amended by 
        striking ``and 30D'' and inserting ``30D, and 30E''.
            (B) Section 25(e)(1)(C)(ii) of such Code is amended by 
        inserting ``30E,'' after ``30D,''.
            (C) Section 25B(g)(2) of such Code is amended by striking 
        ``and 30D'' and inserting ``, 30D, and 30E''.
            (D) Section 26(a)(1) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (E) Section 1400C(d)(2) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (2) Section 6501(m) of such Code is amended by inserting 
        ``30E(f),'' after ``30D(e)(9),''.
            (3) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 30D the following new item:

``Sec. 30E. Sales tax on purchase of automobile.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to vehicles purchased after December 31, 2008.