USA CAR Act
- senate
- house
- president
Last progress May 7, 2025 (7 months ago)
Introduced on May 7, 2025 by Bernardo Moreno
Sponsors
House Votes
Senate Votes
Read twice and referred to the Committee on Finance.
Presidential Signature
AI Summary
This bill lets people deduct the interest they pay on certain car loans from their taxable income. The deduction is “above the line,” which means you can claim it even if you don’t itemize deductions. To qualify, the loan must be used to buy a car that had its final assembly in the United States, and the loan must be secured by that car. The definition section says the loan has to be taken out on or after January 1, 2025. The effective-date section says the new rules apply to interest on loans taken out on or after the date the bill becomes law. Together, that means the deduction is meant for new qualifying car loans going forward, not old ones .
Key details:
- “Qualified automobile interest” covers interest paid or accrued in the year on a loan to buy a qualifying car, with the car used as collateral. A “qualified automobile” is one assembled in the U.S., delivered to a dealer ready for operation, whether or not all parts are permanently installed yet .
| Who is affected | What changes | Which cars qualify | When it starts |
|---|---|---|---|
| Taxpayers with new qualifying car loans | You can deduct car loan interest “above the line” on your taxes | Cars with final assembly in the United States | For loans taken out after the law takes effect; the definition also points to loans on or after Jan 1, 2025 |
This is aimed at lowering the cost of buying U.S.-assembled cars by reducing your taxable income through the car loan interest deduction .