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.

This bill creates a temporary, special rule inside the federal tax code that allows a deduction for interest paid or accrued on certain new passenger vehicle loans. For tax years 2025 through 2028 (indebtedness incurred after 12/31/2024), “qualified passenger vehicle loan interest” would not count as personal interest for purposes of the existing limit on personal interest deductions. The deduction is capped at $10,000 of interest per year and is subject to a modified adjusted gross income (MAGI) phase-out that reduces the deductible amount as MAGI rises above $100,000 for single filers or $200,000 for joint filers. The bill also creates new reporting requirements for lenders who receive interest on these loans and makes several definitional and implementation changes, including refinancing rules and related-party exclusions, with an effective date tied to indebtedness incurred after 12/31/2024. The goal appears to be to encourage consumer vehicle financing by providing a targeted tax incentive, while imposing additional lender reporting and domestic-assembly criteria.