USA CAR Act

This bill amends the Internal Revenue Code to allow a tax 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, secured by that automobile. A qualified automobile is defined as an automobile (as defined in the Automobile Information Disclosure Act) whose final assembly occurs within the United States, meaning the manufacturer produces the car at a plant or factory from which it is delivered to a dealer with all necessary component parts for mechanical operation, whether or not permanently installed. The deduction applies to amounts paid or accrued on debt incurred on or after January 1, 2025.