S1653119th CongressWALLET

USA CAR Act

Sponsored By: Senator Sen. Moreno, Bernie [R-OH]

Introduced

Summary

Creates an above-the-line deduction for interest on loans to buy U.S.-assembled automobiles. It would define "qualified automobile interest" for individual taxpayers and limit the break to cars whose final assembly occurs in the United States.

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  • Families and car buyers would be able to deduct interest on auto loans for vehicles that meet the bill's U.S.-assembly test, reducing taxable income from those loan payments.
  • Taxpayers would claim the deduction above the line for non-corporate filers. The bill ties qualified interest to indebtedness incurred on or after January 1, 2025 and makes the amendment apply to amounts paid or accrued on debt incurred on or after enactment.
  • Domestic auto manufacturers could face an incentive effect because the deduction only applies to cars whose final assembly occurs in the United States, using the Automobile Information Disclosure Act definition for final assembly.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Tax break for U.S.-assembled car loans

If enacted, non-corporate taxpayers would be able to deduct above the line the portion of their car loan interest that qualifies. The car must have final assembly in the United States as defined in 15 U.S.C. 1231. The loan must be secured by the car and incurred on or after January 1, 2025. The bill's tax change would apply to interest amounts paid or accrued on indebtedness incurred on or after the date of enactment.

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Sponsors & CoSponsors

Sponsor

Sen. Moreno, Bernie [R-OH]

OH • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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