Allow a deduction for loan interest payments made with respect to certain vehicles.

Section 163(h)(4)(D) of the Internal Revenue Code of 1986 is amended by striking clauses (iii) through (vi) and inserting the following:

(iii) which has at least 2 wheels, and

(iv) which—

(aa) is a car, minivan, van, sport utility vehicle, pickup truck, or motorcycle,

(bb) is treated as a motor vehicle for purposes of title II of the Clean Air Act, and

(cc) has a gross vehicle weight rating of less than 14,000 pounds, or

(II) is a trailer, camper, or vehicle which—

(aa) is designed to provide temporary living quarters for recreational, camping, or seasonal use, and

(bb) is a motor vehicle or is designed to be towed by, or affixed to, a motor vehicle.

The amendments made by this section shall apply to indebtedness incurred after December 31, 2025.