Bill · S. 1219· Senate(119-S-1219)
USA CAR Act
- Introduced
- 4/1/2025
- Last activity
- 4/1/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Bernie Moreno
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, titled the United States Automobile Consumer Assistance and Relief Act'' or the USA CAR Act,'' proposes to amend the Internal Revenue Code of 1986. The primary goal is to allow a deduction for qualified automobile interest. This interest must be paid or accrued on debt incurred on or after January 1, 2025, for the purpose of acquiring a qualified automobile. To qualify, the automobile must be one where the final assembly occurs within the United States. The changes would apply to amounts paid or accrued on indebtedness incurred on or after January 1, 2025.
Yes· 3 of 11
Would middle-income households be better off under this?+5
The interest deduction directly benefits middle-class consumers purchasing automobiles.
Does this cut taxes for middle-income families?+5
The bill provides a new tax deduction for automobile interest which lowers the effective tax burden for many consumers.
Would people in middle age be better off under this?+3
Middle-aged adults are likely to benefit from the deduction for vehicle purchases.
The opposite
Does this make trade with other countries easier?-2
The emphasis on domestic assembly could create trade friction with foreign automobile manufacturers.
Does this reduce what the federal government owes?-1
Tax deductions generally reduce federal revenue, which could slightly increase the deficit.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Deduction for Interest Payments: Individuals may be able to claim a deduction for interest paid on car loans, provided the debt is incurred on or after January 1, 2025, to acquire a qualified automobile (Section 2(a) and Section 2(b)(A)).
-
Support for Domestic Manufacturing: The bill targets automobiles where the final assembly occurs within the United States, which defines a qualified automobile (Section 2(b)(B)(i) and Section 2(b)(B)(ii)).
Potential Negative Impacts for People
- Restrictions on Vehicle Eligibility: The interest deduction is only available for debt used to acquire a "qualified automobile," which specifically means a vehicle where the final assembly occurs within the United States (Section 2(b)(B)). This means interest on loans for automobiles assembled outside of the United States would not qualify for the 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+5Good For Middle Aged+3Good For Union Workers+3Good For High Income Households+2Good For Young Adults+2Good For Low Income Households+1Good For Seniors+1
- Economy And Finance
- Reduces Middle Class Taxes+5Increases Job Creation+3Improves Economic Growth+2Reduces National Debt-1
- National Security And Foreign Policy
- Improves International Trade-2
- Governance And Ideology
- Increases Federal Power+1
- 4/1/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
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.