Bill > HR2981

This bill, known as the USA CAR Act (United States Automobile Consumer Assistance and Relief Act), proposes to amend the Internal Revenue Code to allow taxpayers a new tax deduction for interest paid on automobile loans that meet specific criteria. Specifically, the bill creates a new category called "qualified automobile interest" for loans taken out on or after January 1, 2025, which must be for automobiles that are entirely assembled in the United States. The term "final assembly" is defined as the manufacturing process where an automobile is completed at a U.S. plant with all necessary component parts, and the vehicle is ready to be delivered to a dealer. To qualify for the deduction, the automobile loan must be secured by the automobile itself and incurred specifically for purchasing the vehicle. This legislation appears designed to incentivize consumers to purchase domestically manufactured vehicles by offering a tax benefit in the form of an interest payment deduction, which could potentially support the U.S. automotive manufacturing industry by encouraging domestic car purchases.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2981/all-info