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Tax Deduction for US-Assembled Car Loan Interest

A new law allows taxpayers to deduct interest paid on loans for cars assembled in the United States. This could lead to tax savings for individuals purchasing new vehicles, provided the final assembly of the car occurred within the US. These changes apply to loans taken out from January 1, 2025.
Key points
Ability to deduct car loan interest from taxable income, potentially lowering taxes.
The deduction applies only to automobiles with final assembly in the United States.
Changes are effective for loans incurred on or after January 1, 2025.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_3570
Sponsor: Rep. Taylor, David J. [R-OH-2]
Process start date: 2025-05-21
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

USA CAR Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_3570.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-05-21.

What are the main provisions?

Key points include:

  • Ability to deduct car loan interest from taxable income, potentially lowering taxes.
  • The deduction applies only to automobiles with final assembly in the United States.
  • Changes are effective for loans incurred on or after January 1, 2025.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Taylor, David J. [R-OH-2].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Taxes Transport Economy