Refinancing counts up to the old balance, and family loans do not count
To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70203, Sec. 70203.
Written by .
Refinancing counts up to the old balance, and family loans do not count
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70203 in the PDF
What the document says
“Indebtedness described in subparagraph (B) shall not include any indebtedness owed to a person who is related (within the meaning of section 267(b) or 707(b)(1)) to the taxpayer.”
The section provides that debt from refinancing an eligible loan counts where it is secured by a first lien on the same vehicle, but only up to the amount refinanced, and that debt owed to a person related to the taxpayer within the meaning of section 267(b) or 707(b)(1) of the Internal Revenue Code of 1986 does not count.
What the document actually says
“Indebtedness described in subparagraph (B) shall not include any indebtedness owed to a person who is related (within the meaning of section 267(b) or 707(b)(1)) to the taxpayer.”
That sentence, in plain words
A loan from a person close to the buyer does not count. The tax code says who counts as close.
What this is about
A new loan that pays off an old one may count. It counts only up to the old balance. It must still be tied to the same car.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Provide for reconciliation pursuant to title II of H. Con. Res. 14, Public Law 119-21, sec. 70203, 139 Stat. 176 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
This page
“Refinancing counts up to the old balance, and family loans do not count,” Provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70203, Sec. 70203. Read the Mandate, https://readthemandate.org/pl-119-21/proposal/sec70203-refinancing/ (retrieved August 26, 2026).
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