USA CAR Act

This bill amends the Internal Revenue Code to allow a deduction for interest paid on loans for certain automobiles. Sec. 2, Deduction for qualified automobile interest: The bill adds a new category of deductible personal interest for "qualified automobile interest," defined as interest paid or accrued on debt incurred on or after January 1, 2025, to acquire a "qualified automobile" where the debt is secured by that automobile. A "qualified automobile" is defined as an automobile (as defined in the Automobile Information Disclosure Act) made by a manufacturer whose final assembly occurs within the United States. "Final assembly" means the process by which a manufacturer produces an automobile at a plant, factory, or other place from which it is delivered to a dealer with all component parts necessary for mechanical operation included, whether or not permanently installed. The amendments apply to amounts paid or accrued on debt incurred on or after January 1, 2025.