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Tax Deduction for Interest on US-Assembled Car Loans

This new law allows taxpayers to deduct interest paid on loans for purchasing automobiles, provided the vehicle's final assembly occurred in the United States. This aims to support the American automotive industry and reduce car ownership costs for citizens. The deduction applies to loans incurred on or after January 1, 2025.
Key points
Ability to deduct interest paid on car loans from taxable income.
The deduction applies only to automobiles with final assembly in the U.S.
This deduction can lower your taxable income, potentially reducing your tax bill.
The provisions 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_S_1653
Sponsor: Sen. Moreno, Bernie [R-OH]
Process start date: 2025-05-07
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Summarized by: gemini-2.5-flash
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_S_1653.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-05-07.

What are the main provisions?

Key points include:

  • Ability to deduct interest paid on car loans from taxable income.
  • The deduction applies only to automobiles with final assembly in the U.S.
  • This deduction can lower your taxable income, potentially reducing your tax bill.
  • The provisions 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 Sen. Moreno, Bernie [R-OH].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes Transport Economy