2009, the $500,000 and $1,00,000 amounts in 
paragraphs (1) and (2) shall each be increased 
by an amount equal to—’’. 
(2) Section 179(b)(5)(A)(ii) of such Code is 
amended by striking ‘‘2006’’ and inserting ‘‘2008’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
SEC. 2. DEDUCTION FOR PURCHASE OF DOMESTICALLY 
MANUFACTURED AUTOMOBILES. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 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 insert-
ing after section 223 the following new section: 
‘‘SEC. 224. DEDUCTION FOR PURCHASE OF DOMESTICALLY 
MANUFACTURED AUTOMOBILES. 
‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an 
individual, there shall be allowed as a deduction an 
amount equal to the cost of any qualified automobile 
placed in service by the taxpayer during the taxable year. 
‘‘(b) LIMITATION PER VEHICLE.—The amount of the 
deduction allowed under subsection (a) for any vehicle 
shall not exceed $10,000. 
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‘‘(c) QUALIFIED AUTOMOBILE.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘qualified auto-
mobile’ means any motor vehicle— 
‘‘(A) the final assembly of which is in the 
United States by a manufacturer, 
‘‘(B) the original use of which commences 
with the taxpayer, and 
‘‘(C) which is acquired for use by the tax-
payer and not for resale. 
‘‘(2) MOTOR VEHICLE.—For purposes of para-
graph (1), the term ‘motor vehicle’ means any vehi-
cle which is manufactured primarily for use on pub-
lic streets, roads, and highways (not including a ve-
hicle operated exclusively on a rail or rails) and 
which has at least 4 wheels. 
‘‘(d) SPECIAL RULES.— 
‘‘(1) BASIS
REDUCTION.—The basis of any 
property for which a deduction is allowable under 
subsection (a) shall be reduced by the amount of 
such deduction. 
‘‘(2) RECAPTURE.—The Secretary shall, by reg-
ulations, provide for recapturing the benefit of any 
deduction allowable under subsection (a) with re-
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spect to any property which ceases to be property el-
igible for such deduction. 
‘‘(3) 
PROPERTY
USED
OUTSIDE
UNITED 
STATES, ETC., NOT QUALIFIED.—No deduction shall 
be allowed under subsection (a) with respect to any 
property referred to in section 50(b) or with respect 
to the portion of the cost of any property taken into 
account under section 179. 
‘‘(4) PROPERTY
USED
IN
TRADE
OR
BUSI-
NESS.—No deduction shall be allowed under sub-
section (a) with respect to any property of a char-
acter which is subject to the allowance under section 
167 (relating to allowance for depreciation, etc.). 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—No deduction 
shall be allowed under subsection (a) for any expense for 
which a deduction or credit is allowed under any other 
provision of this chapter. 
‘‘(f) TERMINATION.—This section shall not apply to 
any taxable year beginning after December 31, 2010.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part VII of subchapter B of chapter 1 of such Code 
is amended by striking the last item and inserting the fol-
lowing new items: 
‘‘Sec. 224. Deduction for purchase of domestically manufactured automobiles. 
‘‘Sec. 225. Cross reference.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service in 
taxable years ending after the date of the enactment of 
this Act. 
Æ 
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