USA CAR Act

HR 2981, the USA CAR Act, creates a new federal tax deduction for interest paid on loans used to purchase certain U.S.-assembled vehicles. It directly affects taxpayers who finance new cars meeting specific criteria: the vehicle must be manufactured with final assembly occurring within the United States (as defined by the Automobile Information Disclosure Act). The bill adds a new "qualified automobile interest" category to the tax code, allowing deductions for interest on loans taken out on or after January 1, 2025, for these qualifying vehicles. The deduction applies only to loans secured by the automobile and acquired after the specified date.