Car loan interest is taken out of personal interest for 2025 through 2028
What the document says“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.”
The section inserts a new paragraph (4) into section 163(h) of the Internal Revenue Code of 1986, redesignating paragraph (4) as paragraph (5). For taxable years beginning after December 31, 2024 and before January 1, 2029, personal interest does not include qualified passenger vehicle loan interest.
What the document actually says“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.”
For four tax years car loan interest is treated apart. It no longer counts as personal interest. That runs from 2025 through 2028.
Personal interest is normally not deductible. Taking car loan interest out of it opens a break. The four years are fixed in the law.
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