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Proposed Bill Would Give Customers $3,500 To Buy U.S.-Made Cars

motor1 logo motor1 8/17/2018 Anthony Alaniz
a red and black truck sitting on top of a car: 2018 Jeep Wrangler© Motor1.com 2018 Jeep Wrangler

Revoking a tax cut for automakers would pay for the program.

Sen. Sherrod Brown (D-OH) introduced a bill to help Americans buy American-made cars. Called the American Cars, American Jobs Act, the bill proposes giving a $3,500 incentive to customers who buy a new America-made vehicle. The incentive is available for new-car purchases and qualifying five-year leases. 

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Brown’s bill also proposes revoking “a special GOP tax cut on overseas profits for auto manufacturers that ship jobs overseas" to pay for the temporary program. Vehicles with at least 45 percent of materials form the U.S. and Canada would qualify for the program. 

“There are two simple parts: customers who buy cars made in America get a discount and corporations that send jobs overseas lose a special tax break,” Brown said in the bill's announcement. “We shouldn’t be handing out 50 percent off coupons to companies that send jobs overseas.”

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Brown’s office listed nearly 100 vehicles that would qualify (PDF) for the program, which includes every passenger vehicle made in his home state. Vehicles on the list include the Jeep Wrangler, Ford F-150, Acura MDX, Honda Ridgeline, Mercedes C-Class, Infiniti QX60, and many more. 

“American autoworkers have built the cars our families have driven for decades, and they need our support,” said Rich Rankin, UAW Region 2-B Director. “Sen. Brown’s bill does just that. The American Cars, American Jobs Act takes important steps to level the playing field for the Ohio auto industry and to make sure Ohio’s tradition of excellence in auto manufacturing continues. 

In Brown’s announcement, the senator called out GM for its decision to announce producing the new Chevy Blazer in Mexico the same day the company ended the second shift at its Lordstown, Ohio plant. 

Right now, the bill is just a proposal, and likely several months away from a vote consideration in the U.S. Senate. 

Research the new Jeep Wrangler on MSN Autos

Related slideshow: Trade War Trouble: What America's Most Popular Cars Could Cost

a car parked in front of a truck: There are few, if any, winners in a trade war. Increased costs are passed to consumers. With President Donald Trump imposing tariffs on steel, aluminum, lumber and cars from China, Canada, and Europe, those affected countries and continent are retaliating by imposing their own tariffs. The tit-for-tat battle of economical superiority could mean even more tariffs imposed on both imported and exported U.S. goods. The President has promised another $2 billion of tariffs on Chinese goods that could come later this fall. He’s also promised a 20-percent tariff on import automobiles and auto parts. Companies will have to pass these higher costs to consumers – it’s the cost of doing business. But that’s not all that could affect prices. The Federal Reserve plans on raising interest rates, which would mean consumers would be paying even more money for a vehicle. The compounding of cost could hurt some people’s chance of buying a new car. Data from Experian, the credit reporting company, shows just how much more consumers may have to pay if President Trump imposes a 25-percent tariff on automobiles and parts. The company breaks down how much more consumers could pay for America’s top 20 selling vehicles. Source: Experian Learn About The Effects Of Tarif: Auto-Producing Nations Banding Together On Proposed U.S. Tariffs 10 Reasons Why Trump’s Car Tariffs Could Increase Sticker Prices

Source: Sen. Sherrod Brown via The Car Connection

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