Senator Barbara Mikulski (D-Md.) announced that she plans on introducing a bill next week to Congress that would make the interest on car loans tax deductible. The sales and excise taxes on a new car would also be tax deductible. Under Mikulski’s proposed bill, any new car purchased before Jan. 1 2009 would be eligible.
On a $25,000 car, the tax deductions would come out to $1,553, according to Bloomberg. Combined with the massive incentives manufacturers are offering, new car buyers can get much better value for their dollar than ever before.