Bill > HR3450

This bill amends the Internal Revenue Code to create a new tax deduction for passenger vehicle loan interest from 2024 to 2028. Specifically, taxpayers will be able to deduct interest paid on loans for personal vehicles like cars, minivans, SUVs, pickup trucks, motorcycles, and certain recreational vehicles, with some important restrictions. The deduction is limited to $10,000 per year and begins to phase out for individuals with modified adjusted gross income over $100,000 (or $200,000 for joint returns). To qualify, the vehicle must be purchased after December 31, 2024, and must have been primarily manufactured in the United States. The bill excludes certain types of vehicle loans, such as fleet sales, commercial vehicles, lease financing, and vehicles with salvage titles. Additionally, the bill requires lenders to report detailed information about these vehicle loans to the IRS, including loan details and vehicle specifications. The new tax provision is designed to provide financial relief to individuals purchasing vehicles for personal use and to potentially stimulate the domestic automotive market by requiring vehicles to be assembled in the United States.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/3450/all-info