I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Consumer Auto Relief 

5 Act of 2009’’ or the ‘‘CAR Act of 2009’’. 


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1 SEC. 2. TAX INCENTIVES TO CONSUMERS AND LENDERS 

2 FOR THE PURCHASE OF A PASSENGER VEHI3 CLE DURING 2009. 

4 (a) IN GENERAL.—Part VII of subchapter B of chap5 ter 1 of the Internal Revenue Code of 1986 (relating to 

6 additional itemized deductions for individuals) is amended 

7 by redesignating section 224 as section 225 and by insert8 ing after section 223 the following new section: 

9 ‘‘SEC. 224. INCENTIVES TO CONSUMERS AND LENDERS FOR 

10 THE PURCHASE OF A PASSENGER VEHICLE 

11 DURING 2009. 

12 ‘‘(a) DEDUCTION FOR CONSUMER PURCHASES.—In 

13 the case of an individual, there shall be allowed as a deduc14 tion an amount equal to the purchase price of any quali15 fied vehicle placed in service by the taxpayer during the 

16 taxable year. 

17 ‘‘(b) DOLLAR LIMITATIONS.—The deduction allowed 

18 by subsection (a) with respect to each qualified vehicle 

19 shall not exceed— 

20 ‘‘(1) $7,500 if such vehicle is placed in service 

21 during the 90-day period beginning on the date of 

22 the enactment of this section, 

23 ‘‘(2) $5,000 if such vehicle is placed in service 

24 during the 90-day period beginning on the day after 

25 the period described in paragraph (1), and 


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1 ‘‘(3) $2,500 if such vehicle is placed in service 

2 after the period described in paragraph (2). 

3 ‘‘(c) DEFINITIONS.—For purposes of this section— 

4 ‘‘(1) QUALIFIED VEHICLE.— 

5 ‘‘(A) IN GENERAL.—The term ‘qualified 

6 vehicle’ means a motor vehicle which is a pas7 senger automobile or a light truck— 

8 ‘‘(i) the original use of which com9 mences with the taxpayer, 

10 ‘‘(ii) which is acquired for use or lease 

11 by the taxpayer and not for resale, 

12 ‘‘(iii) which is made by a manufac13 turer, or 

14 ‘‘(iv) which is placed in service by the 

15 taxpayer on or after the date of the enact16 ment of this section and before January 1, 

17 2010. 

18 ‘‘(B) EXCEPTIONS.—Such term shall not 

19 include— 

20 ‘‘(i) property referred to in section 

21 50(b)(1) (relating to property used outside 

22 the United States), or 

23 ‘‘(ii) property of a character subject to 

24 the allowance for depreciation or amortiza25 tion. 


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1 ‘‘(2) MOTOR VEHICLE.—The term ‘motor vehi2 cle’ has the meaning given such term by section 

3 30(c)(2). 

4 ‘‘(3) OTHER TERMS.—The terms ‘passenger 

5 automobile’, ‘light truck’, and ‘manufacturer’ have 

6 the meanings given such terms in regulations pre7 scribed by the Administrator of the Environmental 

8 Protection Agency for purposes of the administra9 tion of title II of the Clean Air Act (42 U.S.C. 7521 

10 et seq.). 

11 ‘‘(d) DEDUCTION FOR CONSUMER LOANS TO PUR12 CHASE QUALIFIED VEHICLES; EXCLUSION FROM LEND13 ER’S GROSS INCOME.—In the case of interest on any loan 

14 secured by a qualified vehicle and used by the purchaser 

15 to purchase such vehicle— 

16 ‘‘(1) such interest shall not be treated as per17 sonal interest for purposes of section 163(h), and 

18 ‘‘(2) the gross income of the lender shall not in19 clude 50 percent of such interest received or accrued 

20 on such loan during the taxable year. 

21 ‘‘(e) DEDUCTION FOR STATE AND LOCAL SALES

22 TAXES.—In the case of a purchase of a qualified vehicle, 

23 there shall be allowed as a deduction the amount of gen24 eral sales taxes (within the meaning of section 164(b)(5)) 

25 paid or incurred during the taxable year on such purchase. 


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1 ‘‘(f) SPECIAL RULES.— 

2 ‘‘(1) REDUCTION IN BASIS.—For purposes of 

3 this subtitle, the basis of any property for which a 

4 deduction is allowable under subsection (a) shall be 

5 reduced by the amount of the deduction so allowed. 

6 ‘‘(2) RECAPTURE.—The Secretary shall, by reg7 ulations, provide for recapturing the benefit of any 

8 deduction allowable under subsection (a) with re9 spect to any property which ceases to be property el10 igible for such deduction (including recapture in the 

11 case of a lease period of less than the economic life 

12 of a vehicle).’’. 

13 (b) DEDUCTIONS ALLOWED WHETHER OR NOT TAX14 PAYER ITEMIZES OTHER DEDUCTIONS.—Subsection (a) 

15 of section 62 of such Code is amended by inserting after 

16 paragraph (21) the following new paragraph: 

17 ‘‘(22) DEDUCTIONS RELATING TO PURCHASE

18 OF PASSENGER VEHICLE DURING 2009.—The deduc19 tions allowed by subsection (a), (d), and (e) of sec20 tion 224.’’. 

21 (c) CONFORMING AMENDMENTS.— 

22 (1) Subsection (a) of section 1016 of such Code 

23 is amended by striking ‘‘and’’ at the end of para24 graph (36), by striking the period at the end of 


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1 paragraph (37) and inserting ‘‘, and’’, and by add2 ing at the end the following new paragraph: 

3 ‘‘(38) to the extent provided in section 

4 224(f)(1).’’. 

5 (2) The table of sections for such part VII is 

6 amended by redesignating the item relating to sec7 tion 224 as relating to section 225 and by inserting 

8 after the item relating to section 223 the following 

9 new item: 

‘‘Sec. 224. Incentives to consumers and lenders for the purchase of a passenger 

vehicle during 2009.’’. 

10 (d) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to taxable years ending on or after 

12 the date of the enactment of this Act. 

Æ 


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