Today, Senator Bernie Moreno (R-OH) introduced the United States Automobile Consumer Assistance and Relief Act (USA CAR Act), which would allow Americans to write off interest on auto loans for U.S.-made cars.
Introduce legislation to allow Americans to write off interest on auto loans for U.S.-made cars.
Occurrences
12-05-2025 S.1219 | USA CAR Act Latest Action: Read twice and referred to the Committee on Finance.
Evidence
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SEC. 70203, 'NO TAX ON CAR LOAN INTEREST,' amends Internal Revenue Code section 163(h) to create a deduction for qualified passenger vehicle loan interest for taxable years 2025 through 2028, with the deduction applying only to vehicles with final assembly in the United States.
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Treasury states that section 70203 of Public Law 119-21 provides a newly allowable income tax deduction for qualified passenger vehicle loan interest and that the statute applies to vehicles with final assembly in the United States.
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The enrolled public law includes SEC. 70203, titled 'No tax on car loan interest,' which amends IRC section 163(h) to create a deduction for qualified passenger vehicle loan interest for tax years 2025 through 2028, with a $10,000 annual cap and VIN disclosure requirements.
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Treasury issued proposed regulations implementing the new deduction for qualified passenger vehicle loan interest and the related information-reporting rules for lenders receiving $600 or more of interest on specified passenger vehicle loans.
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The enrolled public law includes Sec. 70203, 'No tax on car loan interest,' amending IRC section 163(h) so personal interest does not include qualified passenger vehicle loan interest for tax years 2025 through 2028, with a $10,000 annual cap.
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The statute defines eligible vehicles and excludes any vehicle whose final assembly did not occur within the United States.
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Congress.gov records H.R.1 as sponsored by Rep. Jodey Arrington, introduced May 20, 2025, passed the Senate on July 1, 2025, and became Public Law 119-21 on July 4, 2025.
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The Senate roll call for H.R.1 passage shows the bill passed 50-50 with the Vice President voting yea, and lists Moreno (R-OH) as voting Yea.
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Moreno's official legislation page lists his sponsored legislation and several H.R.1 amendments, but the visible sponsored-bill listings do not show a standalone auto-loan-interest or U.S.-made-car deduction bill.
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Congress.gov lists S.1219, the USA CAR Act, with Sen. Bernie Moreno as sponsor and states that Mr. Moreno introduced the bill on April 1, 2025. The bill would amend IRC section 163(h) to allow a deduction for qualified automobile interest, and defines a qualified automobile as one whose final assembly occurs within the United States.
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The IRS states that for tax years 2025-2028 taxpayers can take an annual deduction of up to $10,000 of qualified passenger vehicle loan interest, available to itemizing and non-itemizing taxpayers, and that the vehicle's original use must begin with the taxpayer and final assembly must be in the United States.
Assessments
Moreno directly introduced S.1219, the USA CAR Act, on April 1, 2025, during his Senate term. The bill matched the promise by creating an auto-loan-interest deduction for vehicles with final assembly in the United States. The same policy substance was also enacted in Public Law 119-21 during the same term and is reflected in IRS guidance, so the promise is fulfilled with candidate-specific credit.
The promised policy was enacted during Moreno's current Senate term: federal law created a deduction for qualified passenger vehicle loan interest limited to vehicles with final assembly in the United States, and Treasury began implementing it. But the evidence provided shows the outcome itself, not that Moreno introduced the legislation, sponsored the enacted provision, or materially drove it through Congress. Because the substance of the promise was delivered in the same term but candidate-specific credit is not established here, partial credit is the best fit.
Delivered. Moreno introduced the USA CAR Act in the 119th Congress to allow a deduction for auto-loan interest on U.S.-made vehicles, directly matching the promise to introduce legislation. The same policy substance was then enacted during his current Senate term in Public Law 119-21, section 70203, creating a deduction for qualified passenger vehicle loan interest limited to vehicles with final assembly in the United States.