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) in-
troduced 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 Representa-
tives 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’’. 
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SEC. 2. TAX INCENTIVES TO CONSUMERS AND LENDERS 
FOR THE PURCHASE OF A PASSENGER VEHI-
CLE DURING 2009. 
(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. 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 deduc-
tion an amount equal to the purchase price of any quali-
fied 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 
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‘‘(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 pas-
senger automobile or a light truck— 
‘‘(i) the original use of which com-
mences with the taxpayer, 
‘‘(ii) which is acquired for use or lease 
by the taxpayer and not for resale, 
‘‘(iii) which is made by a manufac-
turer, or 
‘‘(iv) which is placed in service by the 
taxpayer on or after the date of the enact-
ment 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 amortiza-
tion. 
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‘‘(2) MOTOR VEHICLE.—The term ‘motor vehi-
cle’ 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 pre-
scribed by the Administrator of the Environmental 
Protection Agency for purposes of the administra-
tion of title II of the Clean Air Act (42 U.S.C. 7521 
et seq.). 
‘‘(d) DEDUCTION FOR CONSUMER LOANS TO PUR-
CHASE QUALIFIED VEHICLES; EXCLUSION FROM LEND-
ER’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 per-
sonal interest for purposes of section 163(h), and 
‘‘(2) the gross income of the lender shall not in-
clude 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 gen-
eral sales taxes (within the meaning of section 164(b)(5)) 
paid or incurred during the taxable year on such purchase. 
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‘‘(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 reg-
ulations, provide for recapturing the benefit of any 
deduction allowable under subsection (a) with re-
spect to any property which ceases to be property el-
igible 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 TAX-
PAYER 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 deduc-
tions allowed by subsection (a), (d), and (e) of sec-
tion 224.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Subsection (a) of section 1016 of such Code 
is amended by striking ‘‘and’’ at the end of para-
graph (36), by striking the period at the end of 
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paragraph (37) and inserting ‘‘, and’’, and by add-
ing 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 sec-
tion 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. 
Æ 
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