USA CAR Act

This bill proposes to amend the Internal Revenue Code of 1986 by creating a new tax deduction for qualified automobile interest . This deduction would allow taxpayers to reduce their taxable income by the amount of interest paid on certain vehicle loans. To qualify, the interest must be paid on indebtedness incurred on or after January 1, 2025 , for the acquisition of a qualified automobile , and the loan must be secured by that vehicle. A qualified automobile is specifically defined as one whose final assembly takes place within the United States . The bill's provisions are set to apply to relevant amounts paid or accrued on indebtedness incurred from January 1, 2025, onward.