Bill · S. 1653· Senate(119-S-1653)
USA CAR Act
- Introduced
- 5/7/2025
- Last activity
- 5/7/2025 — 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 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 people to deduct qualified automobile interest from their taxes. To qualify, the interest must be on debt incurred on or after January 1, 2025, for an automobile that was finally assembled within the United States. The deduction would be an "above-the-line" deduction for taxpayers who are not corporations.
Yes· 3 of 29
Would middle-income households be better off under this?+4
Directly benefits middle-class households through an above-the-line deduction for common auto loan interest.
Would people in middle age be better off under this?+3
Middle-aged adults are primary car buyers and likely to utilize this tax deduction.
Would high-income households be better off under this?+3
High-income individuals can also utilize the deduction for U.S. vehicles.
The opposite
Does this reduce what the federal government owes?-2
The creation of a new tax deduction likely reduces federal tax revenue, which could marginally increase the national debt.
Does this make the government pay for what it commits to?-1
Decreases tax revenue without an offsetting spending cut.
Does this make trade with other countries easier?-1
The restriction to U.S.-assembled vehicles may be viewed as a protectionist measure that discourages international trade in automobiles.
Who it would affect, and how
Potential Positive Impacts for People
- Tax Deductions for Car Loans: Individuals who are not corporations can deduct interest paid or accrued on debt used to acquire a qualified automobile. This is found in Section 2(a), (b), and (c).
Potential Negative Impacts for People
- Restriction to U.S. Assembly: The tax benefit only applies to automobiles where the final assembly occurs within the United States. People who purchase vehicles assembled outside of the U.S. would not benefit from this deduction. This is found in Section 2(b)(B)(i).
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 African Americans+1Good For Asian Americans+1Good For Billionaires+1Good For Farmers+1Good For Hispanic Americans+1Good For Immigrants+1Good For L G B T Q Community+1Good For Low Income Households+1Good For Men+1Good For Native Americans+1Good For People With Disabilities+1Good For Retirees+1Good For Seniors+1Good For Students+1Good For Ultra High Net Worth Individuals+1Good For Urban Residents+1Good For Veterans+1Good For White Americans+1Good For Women+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-1
- 5/7/2025
- 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.