“To amend the Internal Revenue Code of 1986 to allow an above-the-line deduction for qualified motor vehicle interest, and for other purposes.”
No CRS summary available for this bill.
This section establishes an above-the-line deduction of up to $2,500 for interest paid by an individual during the taxable year on qualified motor vehicle interest (i.e., indebtedness incurred on or after January 1, 2025, to acquire a qualified motor vehicle and secured by such vehicle). A qualified motor vehicle is any vehicle manufactured primarily for use on public streets, roads, and highways (not including those operated exclusively on rails), with at least four wheels and a gross vehicle weight rating of less than 14,000 pounds, made by a manufacturer (as defined in 49 U.S.C. 30102), and with final assembly in the United States; the deduction applies to taxable years beginning after December 31, 2025, and is denied for interest deductible under other Code provisions.