Bill > S1219

This bill, known as the United States Automobile Consumer Assistance and Relief Act (USA CAR Act), proposes a new tax deduction for interest paid on automobile loans for vehicles manufactured in the United States. Specifically, the bill amends the Internal Revenue Code to allow taxpayers to deduct interest on loans for "qualified automobiles" - defined as vehicles where the final assembly occurs within the United States. To be eligible, the automobile loan must be incurred on or after January 1, 2025, and the loan must be secured by the automobile itself. The term "final assembly" is carefully defined as the manufacturing process where a vehicle is completed with all necessary component parts at a U.S. plant or factory before being delivered to a dealer. This legislation aims to incentivize the purchase of domestically manufactured vehicles by providing a financial benefit to consumers in the form of a tax deduction on automobile loan interest, potentially supporting the U.S. automotive manufacturing industry.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1219/all-info