USA CAR Act

Section 163(h)(2) of the Internal Revenue Code of 1986 is amended by striking and at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting, and, and by adding at the end the following new subparagraph:

(G) any qualified automobile interest (as defined in paragraph (5)).

Section 163(h) is amended by adding at the end the following new paragraph:

For purposes of this subsection—

The term qualified automobile interest means any interest which is paid or accrued during the taxable year on indebtedness which—

(i) is incurred on or after January 1, 2025,

(ii) is incurred in acquiring a qualified automobile, and

(iii) is secured by such automobile.

The term qualified automobile means an automobile (within the mean of section 2 of the Automobile Information Disclosure Act (15 U.S.C. 1231)) which is made by a manufacturer (within the meaning of section 2 of such Act) the final assembly of which occurs within the United States.

The term final assembly means the process by which a manufacturer produced an automobile at, or through the use of, a plant, factory, or other place from which the automobile is delivered to a dealer with all component parts necessary for the mechanical operation of the automobile included with the automobile, whether or not the component parts are permanently installed in or on the automobile.

Section 62(a) of the Internal Revenue Code of 1986 is amended by inserting after paragraph (21) the following new paragraph:

(22) In the case of a taxpayer other than a corporation, so much of the deduction allowed under section 163 which is attributable to qualified automobile interest (as defined in section 163(h)(5)).

The amendments made by this section shall apply to amounts paid or accrued on indebtedness incurred on or after the date of the enactment of this Act.