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To amend the Internal Revenue Code of 1986 to allow a deduction for qualified automobile interest.
Summary
This bill amends the Internal Revenue Code to allow taxpayers to deduct interest paid on loans for automobiles manufactured and assembled in the United States. The deduction applies to loans incurred on or after January 1, 2025, when the loan is secured by the vehicle itself. A qualified automobile is defined as one whose final assembly occurs within the United States by a manufacturer. The amendment would take effect immediately for qualifying loans.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
- Rep. Taylor, David [R-OH-2] (R-OH)
Actions (2)
- Apr 21, 2025 Referred to the House Committee on Ways and Means. · house
- Apr 21, 2025 Introduced in House
Similar bills (6)
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Text versions (1)
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Full text
IN THE HOUSE OF REPRESENTATIVES
April 21, 2025
Mr. Taylor introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow a deduction for qualified automobile interest.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “United States Automobile Consumer Assistance and Relief Act” or the “USA CAR Act”.
SEC. 2. DEDUCTION FOR QUALIFIED AUTOMOBILE INTEREST.
(a) In General.—Section 163(h)(2) of the Internal Revenue Code of 1986 is amended by striking “and” at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting “, and”, and by adding at the end the following new subparagraph:
“(G) any qualified automobile interest (as defined in paragraph (5)).”.
(b) Qualified Automobile Interest.—Section 163(h) is amended by adding at the end the following new paragraph:
“(5) Qualified automobile interest.—For purposes of this subsection—
“(A) In general.—The term ‘qualified automobile interest’ means any interest which is paid or accrued during the taxable year on indebtedness which—
“(i) is incurred on or after January 1, 2025,
“(ii) is incurred in acquiring a qualified automobile, and
“(iii) is secured by such automobile.
“(B) Qualified automobile.—
“(i) In general.—The term ‘qualified automobile’ means an automobile (within the mean of section 2 of the Automobile Information Disclosure Act (15 U.S.C. 1231) which is made by a manufacturer (within the meaning of section 2 of such Act) the final assembly of which occurs within the United States.
“(ii) Final assembly.—The term ‘final assembly’ means the process by which a manufacturer produced an automobile at, or through the use of, a plant, factory, or other place from which the automobile is delivered to a dealer with all component parts necessary for the mechanical operation of the automobile included with the automobile, whether or not the component parts are permanently installed in or on the automobile.”.
(c) Effective Date.—The amendments made by this section shall apply to amounts paid or accrued on indebtedness incurred on or after January 1, 2025. <all>
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