119-s1219

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1219 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 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

 April 1 (legislative day, March 31), 2025

 Mr. Moreno introduced 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``United States Automobile Consumer 
Assistance and Relief Act'' or the ``USA CAR Act''.

SEC. 2. DEDUCTION FOR QUALIFIED AUTOMOBILE INTEREST.

    (a) In General.--

Section 163

    (h)

    (2) of the Internal Revenue Code of 
1986 is amended by striking ``and'' at the end of subparagraph
        (E) , by 
striking the period at the end of subparagraph
        (F) and inserting ``, 
and'', and by adding at the end the following new subparagraph:
 ``
        (G) any qualified automobile interest (as defined 
 in paragraph

    (5) ).''.

    (b) Qualified Automobile Interest.--

Section 163

    (h) is amended by 
adding at the end the following new paragraph:
 ``

    (5) Qualified automobile interest.--For purposes of this 
 subsection--
 ``
        (A) In general.--The term `qualified automobile 
 interest' means any interest which is paid or accrued 
 during the taxable year on indebtedness which--
 ``
            (i) is incurred on or after January 1, 
 2025,
 ``
            (ii) is incurred in acquiring a qualified 
 automobile, and
 ``
            (iii) is secured by such automobile.
 ``
        (B) Qualified automobile.--
 ``
            (i) In general.--The term `qualified 
 automobile' means an automobile (within the 
 mean of 

section 2 of the Automobile Information 
 Disclosure Act (15 U.S.C. 1231) which is made 
 by a manufacturer (within the meaning of 
 

section 2 of such Act) the final assembly of 
 which occurs within the United States.
 ``
            (ii) Final assembly.--The term `final 
 assembly' means the process by which a 
 manufacturer produced an automobile at, or 
 through the use of, a plant, factory, or other 
 place from which the automobile is delivered to 
 a dealer with all component parts necessary for 
 the mechanical operation of the automobile 
 included with the automobile, whether or not 
 the component parts are permanently installed 
 in or on the automobile.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or accrued on indebtedness incurred on or after 
January 1, 2025.
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