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Car Loan Interest Deduction Bill

Recent Bills/Car Loan Interest Deduction Bill

Car Loan Interest Deduction Bill

IntroducedMay 21, 2025

Introduced7 months ago

Intro

House

Senate

Pres

Introduced in Senate

Why This Matters

This bill lets individuals deduct the interest on loans for new cars made in the U.S. from their taxes, helping them save money.

If you buy a new car and take out a loan, you could save money on your taxes.

Who this affects

Individuals taking out loans · New car buyers · U.S. car buyers

What changes is this bill making?

1This bill allows people to deduct interest paid on car loans from their taxes.
2The deduction applies to loans taken out after January 1, 2025.
3Only interest on loans for cars made in the United States qualifies for this deduction.
4This deduction is available for individual taxpayers, not corporations.
5The bill aims to help consumers save money when buying cars.

Bill Progress1 of 4

Bills must pass the House, Senate, and be signed by the President to become law.

Intro

House

Senate

Pres

IntroducedCurrentMay 21, 2025

Introduced in Senate

Sponsors

See all 13 sponsors

House

Senate

President

The President

Similar Bills

House Bill · HR 3450

1 of 4 · Introduced

Car Loan Interest Deduction Bill

To amend the Internal Revenue Code of 1986 to provide for special rules allowing taxpayers to deduct qualified passenger vehicle loan interest paid or accrued during the taxable year on certain indebtedness, and for other purposes.

House Bill · HR 7222

1 of 4 · Introduced

No Tax on Boat Loan Interest Act of 2026

Senate Bill · S 559

1 of 4 · Introduced

Business Interest Deduction Bill