H.R. 3191: Made in America Motors Act

This bill, titled the Made in America Motors Act, proposes changes to the Internal Revenue Code related to motor vehicle interest deductions for taxpayers. Here is a breakdown of the main components:

1. Deduction for Motor Vehicle Interest

The bill introduces a new provision that allows individuals to deduct interest paid on loans taken out for qualified motor vehicles. Key points include:

• The deduction is available for interest on loans for vehicles purchased on or after January 1, 2025.
• The maximum deduction amount is set at $2,500 per taxable year.
• This deduction cannot be claimed if the interest is already eligible for deduction under any other tax provision.

2. Definition of Qualified Motor Vehicle Interest

Qualified motor vehicle interest is defined by a few criteria:

• The interest must be incurred when acquiring a qualified motor vehicle.
• The interest must be secured by the vehicle itself.

3. Definition of Qualified Motor Vehicle

A qualified motor vehicle must meet the following requirements:

• It is primarily manufactured for use on public streets and roads (not rail).
• It has at least four wheels.
• It has a gross vehicle weight rating of less than 14,000 pounds.
• It is manufactured by a recognized manufacturer.
• The final assembly of the vehicle occurs within the United States.

4. Final Assembly Definition

Final assembly is described as the manufacturing process that results in the vehicle being ready for delivery to a dealer, with all necessary component parts included for its operation.

5. Itemization of Deductions

The bill specifies that the deduction for motor vehicle interest can be claimed regardless of whether the taxpayer itemizes other deductions on their tax return.

6. Effective Date

The provisions in this bill are set to take effect for taxable years beginning after December 31, 2025.

Relevant Companies

• F (Ford Motor Company): As a major manufacturer of motor vehicles, Ford could see increased sales due to the incentives for consumers to purchase during the deductible period.
• TSLA (Tesla, Inc.): Tesla may benefit from this bill as it could incentivize more consumers to purchase electric vehicles, which are considered qualified motor vehicles under the bill.
• GM (General Motors): Similar to Ford, GM may see a boost in sales as consumers take advantage of the motor vehicle interest deduction.
• STLA (Stellantis N.V.): Stellantis, as a producer of various motor vehicles, stands to gain from the increased sales driven by the deduction.