To amend the Internal Revenue Code of 1986 to provide for special rules allowing taxpayers to deduct qualified passenger vehicle loan interest paid or accrued during the taxable year on certain indebtedness, and for other purposes.

This bill would let people deduct the interest they pay on certain passenger car loans when filing their taxes. It also sets up new reporting rules so the IRS gets the info it needs to track these deductions.

Businesses that receive $600 or more in interest from an individual’s car loan in a year must send a report to the IRS and give the customer a yearly statement by January 31. That statement must show the person’s name and address, how much interest was paid, the loan’s starting balance for the year, when the loan began, and the car’s year, make, and model. The IRS will set the forms and can make rules to prevent duplicate reporting.

• Who is affected: People with certain car loans; lenders and finance companies that collect car loan interest .
• What changes: Possible tax deduction for car loan interest; lenders must report interest of $600+ and send customers a yearly statement with loan and vehicle details .
• When: Annual customer statements are due by January 31 for the prior year.