US SB1653

Allows taxpayers to deduct interest paid on auto loans from their federal income taxes, similar to the existing mortgage interest deduction

Applies only to loans incurred on or after January 1, 2025, for vehicles with final assembly occurring within the United States

Provides the deduction as an "above-the-line" deduction, meaning taxpayers can claim it without itemizing their deductions

Available to non-corporate taxpayers; the loan must be secured by the qualifying automobile

Introduced by Senator Moreno on May 7, 2025, and referred to the Senate Committee on Finance