II
119THCONGRESS
1
STSESSION S. 1219
To amend the Internal Revenue Code of 1986 to allow a deduction for
qualified automobile interest.
IN THE SENATE OF THE UNITED STATES
APRIL1 (legislative day, MARCH31), 2025
Mr. M
ORENOintroduced the following bill; which was read twice and referred
to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to allow a
deduction for qualified automobile interest.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘United States Auto-4
mobile Consumer Assistance and Relief Act’’ or the ‘‘USA 5
CAR Act’’. 6
SEC. 2. DEDUCTION FOR QUALIFIED AUTOMOBILE INTER-7
EST. 8
(a) I
NGENERAL.—Section 163(h)(2) of the Internal 9
Revenue Code of 1986 is amended by striking ‘‘and’’ at 10
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•S 1219 IS
the end of subparagraph (E), by striking the period at 1
the end of subparagraph (F) and inserting ‘‘, and’’, and 2
by adding at the end the following new subparagraph: 3
‘‘(G) any qualified automobile interest (as 4
defined in paragraph (5)).’’. 5
(b) Q
UALIFIEDAUTOMOBILEINTEREST.—Section 6
163(h) is amended by adding at the end the following new 7
paragraph: 8
‘‘(5) Q
UALIFIED AUTOMOBILE INTEREST .—For 9
purposes of this subsection— 10
‘‘(A) I
N GENERAL.—The term ‘qualified 11
automobile interest’ means any interest which is 12
paid or accrued during the taxable year on in-13
debtedness which— 14
‘‘(i) is incurred on or after January 1, 15
2025, 16
‘‘(ii) is incurred in acquiring a quali-17
fied automobile, and 18
‘‘(iii) is secured by such automobile. 19
‘‘(B) Q
UALIFIED AUTOMOBILE .— 20
‘‘(i) I
N GENERAL.—The term ‘quali-21
fied automobile’ means an automobile 22
(within the mean of section 2 of the Auto-23
mobile Information Disclosure Act (15 24
U.S.C. 1231) which is made by a manufac-25
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turer (within the meaning of section 2 of 1
such Act) the final assembly of which oc-2
curs within the United States. 3
‘‘(ii) F
INAL ASSEMBLY.—The term 4
‘final assembly’ means the process by 5
which a manufacturer produced an auto-6
mobile at, or through the use of, a plant, 7
factory, or other place from which the 8
automobile is delivered to a dealer with all 9
component parts necessary for the mechan-10
ical operation of the automobile included 11
with the automobile, whether or not the 12
component parts are permanently installed 13
in or on the automobile.’’. 14
(c) E
FFECTIVEDATE.—The amendments made by 15
this section shall apply to amounts paid or accrued on in-16
debtedness incurred on or after January 1, 2025. 17
Æ
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