A bill to amend the Internal Revenue Code of 1986 to allow a deduction for loan interest payments made with respect to certain vehicles.
Sponsored By: Senator Young, Todd [R-IN]
Introduced
Summary
This bill would expand the tax deduction for interest on vehicle loans to cover many recreational and light passenger vehicles. It defines two qualifying categories that add motorcycles, trailers, campers and typical passenger cars and trucks under 14,000 pounds and applies to loans taken after December 31, 2025.
Show full summary
- Families and households who finance recreational vehicles, trailers, or campers would be able to deduct interest on those vehicle loans.
- Owners of motorcycles and of cars, minivans, SUVs, pickup trucks and vans that are treated as motor vehicles under the Clean Air Act and weigh under 14,000 pounds would qualify for the deduction.
- Tax preparers and filers would need to apply the bill's two-category vehicle definitions when deciding if vehicle loan interest is deductible for indebtedness after December 31, 2025.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
More vehicle loan interest deductions
You would be able to deduct interest on loans for more types of passenger and recreational vehicles. Qualifying vehicles would include cars, minivans, vans, SUVs, pickup trucks, and motorcycles that count as motor vehicles under Title II of the Clean Air Act and have a gross vehicle weight rating under 14,000 pounds. It would also include trailers, campers, and vehicles made for temporary living quarters if they are motor vehicles or are designed to be towed by or affixed to a motor vehicle. The expansion would apply only to loans or other indebtedness incurred after December 31, 2025.
Sponsors & CoSponsors
Sponsor
Young, Todd [R-IN]
IN • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov