Good news from SEMA: the Cash for Clunkers clause in the economic stimulus has been defeated and will not be advancing in its current form. As usual, it’s not completely over because SEMA suggests another piece of similar legislation may rear its head later in the year.

Your calls, letters, e-mails, and passionate response to this piece of truly bad legislation sent it down in flames. Good work, gearheads!

Here’s the release from SEMA:

THANKS TO YOU, U.S. CONGRESS REJECTS
“CASH FOR CLUNKERS” PROGRAM
In recent weeks, thousands of SEMA members and SEMA Action Network (SAN) enthusiasts responded to a call for action urging lawmakers to reject a Cash for Clunkers program as part of the economic stimulus being drafted in Congress.  Your efforts were successful.  Both the House and Senate versions of the bill are “clunker-free.”  Congratulations!

Two proposals were put forth and then withdrawn during the Congressional debate.  The first was a $8 billion program targeting SUVs and pickup trucks of any year that make less than 18 mpg such as Chevy Silverados, Dodge Rams, Ford F-Series and Jeep Wranglers.  The second would have provided $16 billion worth of cash vouchers to individuals making less than $50,000 a year ($75,000 for families) who allowed their turned-in cars to be destroyed.  A Cash for Clunker proposal may reemerge later this year.  SEMA will remain vigilant in educating legislators on the need to oppose programs that do not spur car sales, reduce emissions or raise fuel economy.
The Senate economic stimulus bill includes a SEMA-supported amendment allowing taxpayers to claim a tax deduction for car-loan interest payments and excise taxes when they buy a new car in 2009.  If enacted in the final stimulus bill, the provision should provide a healthy boost to auto sales.  

Members of Congress recognize that our industry played an important role in scrapping a federal Cash for Clunkers program.  SEMA thanks all member companies and SAN enthusiasts who donated their time and effort to contact legislators.  Your voice helps protect our industry and hobby.