To amend the Internal Revenue Code of 1986 to provide for special rules allowing taxpayers to deduct qualified passenger vehicle loan interest paid or accrued during the taxable year on certain indebtedness, and for other purposes.

HR 3450 would allow taxpayers to deduct interest paid on certain car loans for tax years 2024 through 2028. This applies to loans for personal-use vehicles like cars, SUVs, motorcycles, or recreational vehicles (e.g., campers), but excludes commercial vehicles, leases, salvage-title vehicles, and fleet sales. The deduction is capped at $10,000 annually and phases out for higher-income taxpayers (starting at $100,000 for single filers or $200,000 for joint returns). Lenders must report such interest to the IRS and provide borrowers a statement if the interest received exceeds $600 in a year.