Bill · H.R. 2981· House(119-HR-2981)
USA CAR Act
- Introduced
- 4/21/2025
- Last activity
- 4/21/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- David Taylor
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill is called the "United States Automobile Consumer Assistance and Relief Act" or the "USA CAR Act." It proposes to change the Internal Revenue Code of 1986 to allow a tax deduction for qualified automobile interest. This applies to debt incurred on or after January 1, 2025. To qualify, the interest must be on a loan used to buy a qualified automobile that is secured by that vehicle. A qualified automobile must be made by a manufacturer and have its final assembly occur within the United States.
Yes· 3 of 15
Would middle-income households be better off under this?+4
Directly provides a tax benefit for a common middle-class expenditure.
Would people in middle age be better off under this?+3
Likely the primary demographic for new vehicle purchases and home-owning taxpayers who itemize.
Would high-income households be better off under this?+3
High-income individuals who purchase expensive U.S. cars will see significant tax savings.
The opposite
Does this reduce what the federal government owes?-2
Creating a new tax deduction typically reduces federal tax revenue, which could marginally increase the deficit.
Does this make trade with other countries easier?-2
By incentivizing U.S.-assembled cars over foreign ones, this bill could be seen as a protectionist measure affecting international trade relations.
Does this make the government pay for what it commits to?-1
Increases tax expenditures without a corresponding spending cut.
Who it would affect, and how
Potential Positive Impacts for People
- Tax Deduction for Car Loans: Section 2(a) and 2(b) allow people to deduct interest paid on loans for qualified automobiles, which could reduce their taxable income.
Potential Negative Impacts for People
- Limited to U.S. Assembled Vehicles: Section 2(b)(B)(i) limits the benefit to automobiles where the final assembly occurs within the United States, meaning people who buy foreign-assembled cars cannot use this deduction.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Middle Class Households+4Good For High Income Households+3Good For Middle Aged+3Good For Union Workers+3Good For High Net Worth Individuals+2Good For Rural Residents+2Good For Young Adults+2Good For Billionaires+1Good For Low Income Households+1Good For Retirees+1Good For Seniors+1Good For Ultra High Net Worth Individuals+1
- Economy And Finance
- Reduces Middle Class Taxes+3Improves Economic Growth+2Increases Job Creation+2Reduces National Debt-2Improves Fiscal Responsibility-1
- National Security And Foreign Policy
- Improves International Trade-2
- 4/21/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House
3 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.