Contact:	Clarence Mills (202) 543-1440 c.mills@att.net
For Release:	Immediate News Bulletin PR-11 February 13, 2009

House-Senate Stimulus Conference
Reduces New Car Incentives

Plug-in Vehicle Credits Expanded

WASHINGTON, D.C., February 13, 2009 - The American Recovery and Reinvestment Act of 2009 was finalized after members of the U.S. Senate and U.S. House of Representatives held a conference to address bill differences. After being passed by Congress, the Stimulus Plan is pending on the desk of President Barack Obama.

Congressional members who conferred on Thursday, Feb. 12, drastically decreased the Auto Ownership Tax Assistance language in the Stimulus Plan. The $11.5 billion tax break that was originally proposed by the Senate is now down to $1.7 billion in the final version of the bill, with tighter limits on who qualifies. However, the total cost of the package is estimated to be $790 billion.

This provision creates a new tax deduction for state and local sales taxes paid on new car purchases. A phase-out of the deduction begins with single filers at a $125,000 adjusted gross income and couples at a $250,000 adjusted gross income.

The bill, on the way to the White House, expands the current tax credits for electric plug-in vehicles to 200,000 vehicles per manufacturer. This consumer tax credit will be 10 percent of the vehicle purchase cost with a maximum credit of $7,500.

The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry. ASA's headquarters is in Bedford, Texas.

ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. For additional information about ASA, including past news releases, go to www.ASAshop.org, or visit ASA's legislative Web site at www.TakingTheHill.com.

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