SUV Tax Loophole Gets Smaller

This week, automakers brace for higher steel costs, small business owners prepare to say goodbye to the HUMMER loophole, Nissan sets interim price hikes, Chrysler recalls around a million minivans and luxury car makers get ready for a sales boom…

1 Million Dodge, Chrysler Minivans Recalled
According to the National Highway Traffic Safety Administration (NHTSA), almost 1 million Dodge and Chrysler minivans are being recalled to repair an electrical irregularity that causes the driver side airbag to fail. The recall includes the Dodge Grand Caravan, Caravan, Plymouth Voyager, Grand Voyager and Chrysler Town & Country, model years 1998 – 2000.

SUV Loophole to End
Small business owners looking to benefit from the existing tax credit on large utility vehicles will be sorry to learn that the “Hummer Loophole” has been sewn up, thanks to a provision in a larger bill on corporate taxes approved by the House and the Senate this month. The bill, which awaits President Bush’s signature, will effectively end the tax credit for vehicles over 6,000 lbs. The tax credit was applicable to 38 existing SUVs and utility vehicles.