Made in America Motors Act

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Made in America Motors Act

HR 3191 IH - To amend the Internal Revenue Code of 1986 to allow an above-the-line deduction for qualified motor vehicle interest, and for other purposes.

SECTION 1. SHORT TITLE

This Act may be cited as the “Made in America Motors Act”.

SEC. 2. DEDUCTION FOR QUALIFIED MOTOR VEHICLE INTEREST

(a) IN GENERAL.—Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended

  1. by redesignating section 224 as section 225 and by inserting after section 223 the following new section:

SEC. 224. DEDUCTION FOR MOTOR VEHICLE INTEREST.

(a) ALLOWANCE OF DEDUCTION.—In the case of an individual, there shall be allowed as a deduction an amount equal to the interest paid by the taxpayer during the taxable year on any qualified motor vehicle interest.

(b) MAXIMUM DEDUCTION. The amount allowed as a deduction under subsection (a) shall not exceed $2,500.

(c) DENIAL OF DOUBLE BENEFIT. No deduction shall be allowed under this section for any interest with respect to which a deduction is allowable under any other provision of this chapter.

(d) QUALIFIED MOTOR VEHICLE INTEREST.—For purposes of this section, the term “qualified motor vehicle interest” means any indebtedness

  1. incurred on or after January 1, 2025,
  2. incurred in acquiring a qualified motor vehicle, and
  3. secured by such motor vehicle.

(e) QUALIFIED MOTOR VEHICLE.—For purposes of this section, the term “qualified motor vehicle” includes any vehicle that is manufactured in the United States.

Deduction Allowed Whether or Not Individual Itemizes Other Deductions

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

(22) MOTOR VEHICLE INTEREST.—The deduction allowed by section 224.

Clerical Amendment

The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as an item relating to section 225 and by inserting after the item relating to section 223 the following new item:

Sec. 224. Deduction for motor vehicle interest.

EFFECTIVE DATE

The amendments made by this section shall apply to taxable years beginning after December 31, 2025.

Direct Link: https://www.govinfo.gov/app/details/BILLS-119hr3191ih