Lets car buyers deduct loan interest for new US-assembled vehicles
The USA CAR Act would let people deduct the interest they pay on loans for new cars. This could lower their taxable income. However, the car must have been put together in the United States, and the loan must be taken out on or after January 1, 2025.
Today, interest paid on car loans generally cannot be deducted from your federal income taxes. If this bill becomes law, you would be able to deduct interest on loans for new cars that were put together in the United States. This change would apply to loans taken out starting January 1, 2025.
HR 2981 · 119th Congress · April 21, 2025 · AI Summary by gemini-2.5-flash · 10/10
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