Manufacturers
Other Investment and Tax Incentives
Date:
December 17, 2010
Who:
IRS
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Economic Target:
Manufacturers
Economic Target:
Other Business
Action Type:
Tax Break
Maximum Amount:
$156.81 billion
Deficit Impact:
$77.18 billion The 2010 tax cut package included a provision that would temporarily allow businesses to immediately write off the costs of equipment for the next two years. In addition, the package included a number of tax extenders that provide various targeted benefits.
Source:
Notes:
Maximum amount represents peak cost of these provision in the ten-year window. Deficit impact represents net costs of these provision from 2011-2020. Because the cost of the business expensing will be partially recouped after it expires, there is a significant difference between these two numbers.
Cash for Clunkers
Date:
June 11, 2009
Who:
Dept. of Trans.
Policy Area:
Fiscal Policy
Economic Target:
Manufacturers
Action Type:
Direct Spending
Maximum Amount:
$3.00 billion
Amount Spent:
$2.88 billion
Deficit Impact:
$2.88 billion The Consumer Assistance to Recycle and Save Act (CARS), also known as "Cash for Clunkers," established a program for owners of gas-guzzling cars and trucks to receive tax credits worth up to $4,500 for purchasing newer, cleaner automobiles. The trade-in vehicle had to get a combined city and highway fuel economy rating of 18 miles per gallon or less.
Notes:
Maximum amount reflects the total authorized funds from H.R.2751. Amount spent equals the amount appropriated. Deficit impact based on CBO analysis. Light vehicle sales data from Bureau of Economic Analysis (http://www.bea.gov/national/index.htm).
Automaker Loans for Energy Efficiency
Date:
September 25, 2008
Who:
Dept. of Energy
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Manufacturers
Action Type:
Loans
Maximum Amount:
$25.00 billion
Amount Spent:
$8.00 billion
Deficit Impact:
$7.51 billion Loans to automakers, provided under the ‘Advanced Technology Vehicles Manufacturing Incentive Program,' to retool factories and perform other activities related to producing “advanced technology vehicles” with better fuel economy performance.
Notes:
Deficit impact based upon net-present value of loans authorized. Total loans might equal less than $25 billion, since the risk of default appears to have increased. It is unknown how much has been issued in loans so far.
Auto Supplier Support Program
Date:
March 19, 2009
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Manufacturers
Action Type:
Government Guarantee
Maximum Amount:
$5.00 billion
Deficit Impact:
-$0.10 billion Program announced by the Treasury Department on March 19, 2009 that provides government guarantees for payments to suppliers from participating auto companies. General Motors and Chrysler have already agreed to partcipate in the program. The program has two components:
Notes:
Amount spent taken from Transaction Reports, current as of 10/15/2010. Maximum amount is maximum financing as stated by Treasury. Amount spent equals loan amount, which will be incrementally funded.
Deficit impact is derived from CBO's subsidy rate for the all assistance given to the automotive industry (60%), as listed in the CBO's January 2010 baseline.
Assistance to Auto Industry
Date:
December 19, 2008
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Manufacturers
Action Type:
Loans
Maximum Amount:
$85.00 billion
Amount Spent:
$41.54 billion
Deficit Impact:
$19.00 billion Loans to beleaguered domestic automakers under the "Automotive Industry Financing Program" within the Troubled Assets Relief Program (TARP).
Notes:
Amount spent indicates loans and other funds issued as of 8/22/2012 (http://www.ustreas.gov/initiatives/eesa/transactions.shtml).
Maximum amount is based on Administration documents on commitments and potential use of TARP funds. Deficit impact calculated by CRFB, using CBO's practice of estimating costs on a risk-adjusted present value basis. Deficit impact is from CBO's March 2011 Report on TARP.
