A bill to amend the Internal Revenue Code of 1986 to allow a deduction for loan interest payments made with respect to certain vehicles.
- Bill Number
- S. 4653
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-06-02: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-06-15T20:04:49Z
AI-Generated Summary
Purpose This legislation amends the Internal Revenue Code to expand the types of vehicles for which interest paid on loans can be deducted from taxable income, specifically including recreational vehicles such as trailers and campers.
Key Provisions
- Amends Section 163(h)(4)(D) of the Internal Revenue Code of 1986.
- Redefines "qualified passenger vehicles" to include:
- Vehicles with at least two wheels that are cars, minivans, vans, sport utility vehicles, pickup trucks, or motorcycles meeting Clean Air Act standards and under 14,000 pounds gross vehicle weight.
- Trailers, campers, or similar vehicles designed for temporary living quarters for recreational, camping, or seasonal use, whether self-propelled or designed to be towed or affixed to a motor vehicle.
- Applies the change to loans incurred after December 31, 2025.
Significant Changes to Existing Law
- Removes prior limitations in clauses (iii) through (vi) of the section and replaces them with a broader definition that explicitly adds recreational vehicles.
- Extends the interest deduction beyond standard passenger automobiles to include vehicles used for temporary living quarters.
Potential Impacts
- Allows eligible taxpayers to reduce their taxable income by deducting interest on loans for recreational vehicles.
- May increase administrative workload for the Internal Revenue Service in verifying eligibility for the expanded deduction.
- No direct effects on government agencies beyond tax administration or on international relations.
Main Stakeholders Affected
- Individual taxpayers who finance the purchase of cars, trucks, motorcycles, or recreational vehicles.
- Manufacturers and sellers of recreational vehicles and related equipment.
- Lenders providing loans for these vehicles.
Notable Legal, Constitutional, or Political Implications
- Represents a tax policy adjustment within existing Internal Revenue Code authority, with no apparent constitutional conflicts.
- Takes effect prospectively for new debt after 2025, limiting immediate fiscal impact.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-06-02: Read twice and referred to the Committee on Finance.
- 2026-06-02: Introduced in Senate
Bill Versions
- To amend the Internal Revenue Code of 1986 to allow a deduction for loan interest payments made with respect to certain vehicles. — issued 2026-06-02 — PDF (2 pages)