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119-hr-2981119th CongressWALLET

USA CAR Act

Sponsored By: Representative Taylor, David J. [R-OH-2]

Introduced

Summary

A new federal tax deduction for interest on financing U.S.-assembled cars would let buyers deduct interest on loans used to buy vehicles whose final assembly occurs in the United States. The deduction would apply only to debt incurred on or after January 1, 2025.

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  • Families and car buyers: Buyers could deduct interest paid or accrued during the tax year on debt used to acquire a “qualified automobile” when the loan is incurred on or after January 1, 2025. This reduces the after-tax cost of financing those vehicles.
  • Automakers and manufacturing: The break is tied to vehicles whose final assembly occurs in the United States under the Automobile Information Disclosure Act. That creates a tax incentive favoring cars assembled in the U.S.
  • Tax system and lenders: The bill adds a new defined term and deduction into the existing federal interest deduction rules in Section 163(h). The change operates through current tax filing and deduction processes.

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Bill Overview

Analyzed Economic Effects

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

Deduct interest on U.S.-built car loans

If enacted, you could deduct the interest you pay on a car loan. The car’s final assembly would need to be in the United States and made by a manufacturer. The loan must be taken on or after January 1, 2025, used to buy that car, and secured by the car. Only interest paid or accrued during the year would count; principal does not. The bill sets no dollar cap on this deduction.

Sponsors & CoSponsors

Sponsor

Taylor, David J. [R-OH-2]

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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