Yesterday the U.S. Senate voted to make car loan interest and sales taxes on new vehicle purchases tax deductible. The proposal was brought forth by the National Automobile Dealers Association and received a 71-26 vote.
The proposal, which would mark the first time since 1986 that you will be able to write off the interest on your car loan has been added to the economic stimulus bill. The proposal was devised as a way to generate more new car purchases.
If the plan goes through buyers will be able to write off about $1,500 a year on a $25,000 loan.
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