Closing The 'Hummer Tax Loophole'

Members of Congress seek to close a loophole that enabled those buy gas-guzzling SUVs to claim a tax deduction of up to $25,000. Auto makers and dealers oppose the idea calling it a "tax increase".

1 minute read

July 2, 2007, 11:00 AM PDT

By Abhijeet Chavan @http://twitter.com/legalaidtech


"Business owners who purchase heavy luxury SUVs, those weighing over 6,000 pounds, get to take deductions up to $25,000...Now some members of Congress are pushing to close the so-called Hummer Tax Loophole. Led by Rep. Earl Blumenauer [who] said that the new bill includes provisions for legitimate business use by exempting farm vehicles, vans, flatbed trucks and school buses from the closure of the loophole. He predicts that the provision will give back to the government about $750 million over five years, which will be used to promote conservation and alternative energy."

Thursday, June 28, 2007 in ABC News

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