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.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 3450 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 3450 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. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES May 15, 2025 Mr. Kelly of Pennsylvania (for himself and Mr. Huizenga) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A 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. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. NO TAX ON CAR LOAN INTEREST. (a) In General.--Section 163(h) of the Internal Revenue Code of 1986 is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph: ``(4) Special rules for taxable years 2024 through 2028 relating to qualified passenger vehicle loan interest.-- ``(A) In general.--In the case of taxable years beginning after December 31, 2024, and before January 1, 2029, for purposes of this subsection the term `personal interest' shall not include qualified passenger vehicle loan interest. ``(B) Qualified passenger vehicle loan interest defined.-- ``(i) In general.--For purposes of this paragraph, the term `qualified passenger vehicle loan interest' means any interest which is paid or accrued during the taxable year on indebtedness incurred by the taxpayer after December 31, 2024, for the purchase of, and that is secured by a