A new bill moving through the U.S. Senate designed to help ailing manufacturers boost spending and add jobs would rewrite a part of the tax code that has been boosting SUV sales, according to the Detroit News. The Senate Finance Committee voted this week to grant a 3 percent, across-the-board tax break to manufacturers, seeking to buttress a key sector of the economy amid concerns of job losses. Lawmakers want manufacturers to use the tax savings to reinvest in U.S. operations and add jobs, the News said. But the tax bill includes scores of other provisions aimed at lowering the overall cost of the legislation, according to the News. It reduces the so-called SUV tax loophole, which enables small businesses to write off up to $100,000 of the cost of an SUV that qualifies as business equipment. The bill redefines which vehicles qualify as business equipment and limits the deduction for qualifying vehicles to $25,000. But automakers see the provision as a downside to a bill that otherwise is a boon to manufacturers. They said it would hurt small businesses who need the SUVs and trucks that qualify. "They've isolated one group of taxpayers and taken away a legitimate deduction," said General Motors spokesman Chris Preuss, according to the News.
0 Comments