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,' which is interest paid or accrued on debt incurred on or after January 1, 2025, to acquire a 'qualified automobile' that secures the debt. A 'qualified automobile' is defined as an automobile (as defined in the Automobile Information Disclosure Act) whose final assembly occurs within the United States, with 'final assembly' meaning the process at a U.S. plant where the automobile is produced with all necessary component parts. The deduction is allowed 'above-the-line' for non-corporate taxpayers, meaning it can be taken even if the taxpayer does not itemize deductions. The amendments apply to amounts paid or accrued on debt incurred on or after the date of enactment.