USA CAR Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2981 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 2981

  To amend the Internal Revenue Code of 1986 to allow a deduction for 
                     qualified automobile interest.


_______________________________________________________________________


                    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.
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