| 1 | 1 | | II |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 1219 |
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| 5 | 5 | | To amend the Internal Revenue Code of 1986 to allow a deduction for |
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| 6 | 6 | | qualified automobile interest. |
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| 7 | 7 | | IN THE SENATE OF THE UNITED STATES |
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| 8 | 8 | | APRIL1 (legislative day, MARCH31), 2025 |
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| 9 | 9 | | Mr. M |
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| 10 | 10 | | ORENOintroduced the following bill; which was read twice and referred |
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| 11 | 11 | | to the Committee on Finance |
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| 12 | 12 | | A BILL |
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| 13 | 13 | | To amend the Internal Revenue Code of 1986 to allow a |
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| 14 | 14 | | deduction for qualified automobile interest. |
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| 15 | 15 | | Be it enacted by the Senate and House of Representa-1 |
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| 16 | 16 | | tives of the United States of America in Congress assembled, 2 |
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| 17 | 17 | | SECTION 1. SHORT TITLE. 3 |
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| 18 | 18 | | This Act may be cited as the ‘‘United States Auto-4 |
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| 19 | 19 | | mobile Consumer Assistance and Relief Act’’ or the ‘‘USA 5 |
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| 20 | 20 | | CAR Act’’. 6 |
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| 21 | 21 | | SEC. 2. DEDUCTION FOR QUALIFIED AUTOMOBILE INTER-7 |
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| 22 | 22 | | EST. 8 |
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| 23 | 23 | | (a) I |
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| 24 | 24 | | NGENERAL.—Section 163(h)(2) of the Internal 9 |
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| 25 | 25 | | Revenue Code of 1986 is amended by striking ‘‘and’’ at 10 |
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| 26 | 26 | | VerDate Sep 11 2014 02:44 Apr 05, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1219.IS S1219 |
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| 27 | 27 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 |
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| 28 | 28 | | •S 1219 IS |
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| 29 | 29 | | the end of subparagraph (E), by striking the period at 1 |
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| 30 | 30 | | the end of subparagraph (F) and inserting ‘‘, and’’, and 2 |
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| 31 | 31 | | by adding at the end the following new subparagraph: 3 |
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| 32 | 32 | | ‘‘(G) any qualified automobile interest (as 4 |
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| 33 | 33 | | defined in paragraph (5)).’’. 5 |
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| 34 | 34 | | (b) Q |
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| 35 | 35 | | UALIFIEDAUTOMOBILEINTEREST.—Section 6 |
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| 36 | 36 | | 163(h) is amended by adding at the end the following new 7 |
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| 37 | 37 | | paragraph: 8 |
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| 38 | 38 | | ‘‘(5) Q |
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| 39 | 39 | | UALIFIED AUTOMOBILE INTEREST .—For 9 |
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| 40 | 40 | | purposes of this subsection— 10 |
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| 41 | 41 | | ‘‘(A) I |
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| 42 | 42 | | N GENERAL.—The term ‘qualified 11 |
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| 43 | 43 | | automobile interest’ means any interest which is 12 |
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| 44 | 44 | | paid or accrued during the taxable year on in-13 |
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| 45 | 45 | | debtedness which— 14 |
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| 46 | 46 | | ‘‘(i) is incurred on or after January 1, 15 |
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| 47 | 47 | | 2025, 16 |
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| 48 | 48 | | ‘‘(ii) is incurred in acquiring a quali-17 |
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| 49 | 49 | | fied automobile, and 18 |
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| 50 | 50 | | ‘‘(iii) is secured by such automobile. 19 |
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| 51 | 51 | | ‘‘(B) Q |
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| 52 | 52 | | UALIFIED AUTOMOBILE .— 20 |
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| 53 | 53 | | ‘‘(i) I |
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| 54 | 54 | | N GENERAL.—The term ‘quali-21 |
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| 55 | 55 | | fied automobile’ means an automobile 22 |
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| 56 | 56 | | (within the mean of section 2 of the Auto-23 |
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| 57 | 57 | | mobile Information Disclosure Act (15 24 |
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| 58 | 58 | | U.S.C. 1231) which is made by a manufac-25 |
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| 59 | 59 | | VerDate Sep 11 2014 02:44 Apr 05, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1219.IS S1219 |
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| 60 | 60 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 |
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| 61 | 61 | | •S 1219 IS |
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| 62 | 62 | | turer (within the meaning of section 2 of 1 |
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| 63 | 63 | | such Act) the final assembly of which oc-2 |
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| 64 | 64 | | curs within the United States. 3 |
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| 65 | 65 | | ‘‘(ii) F |
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| 66 | 66 | | INAL ASSEMBLY.—The term 4 |
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| 67 | 67 | | ‘final assembly’ means the process by 5 |
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| 68 | 68 | | which a manufacturer produced an auto-6 |
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| 69 | 69 | | mobile at, or through the use of, a plant, 7 |
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| 70 | 70 | | factory, or other place from which the 8 |
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| 71 | 71 | | automobile is delivered to a dealer with all 9 |
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| 72 | 72 | | component parts necessary for the mechan-10 |
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| 73 | 73 | | ical operation of the automobile included 11 |
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| 74 | 74 | | with the automobile, whether or not the 12 |
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| 75 | 75 | | component parts are permanently installed 13 |
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| 76 | 76 | | in or on the automobile.’’. 14 |
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| 77 | 77 | | (c) E |
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| 78 | 78 | | FFECTIVEDATE.—The amendments made by 15 |
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| 79 | 79 | | this section shall apply to amounts paid or accrued on in-16 |
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| 80 | 80 | | debtedness incurred on or after January 1, 2025. 17 |
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| 81 | 81 | | Æ |
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| 82 | 82 | | VerDate Sep 11 2014 02:44 Apr 05, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S1219.IS S1219 |
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| 83 | 83 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB |
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