To amend the Internal Revenue Code of 1986 to provide for special rules allowing taxpayers to deduct qualified passenger vehicle loan interest paid or accrued during the taxable year on certain indebtedness, and for other purposes.

# Bill Summary: HR 3450 **What the Bill Would Do** HR 3450 proposes to change federal tax law to allow taxpayers to deduct interest paid on certain car loans. Currently, interest on personal vehicle loans is generally not tax-deductible (unlike mortgage or student loan interest). This bill would create an exception, letting people subtract qualifying vehicle loan interest from their taxable income, potentially lowering their tax bills. **Who It Affects** The bill would primarily benefit individuals who take out loans to purchase passenger vehicles. The exact scope depends on specific requirements in the full bill text—such as income limits, loan amount caps, or vehicle type restrictions—which aren't detailed in this summary.

It could potentially affect millions of American car buyers and current vehicle owners with existing loans. **Current Status** HR 3450 was introduced by Representative Mike Kelly (R-PA) in the 119th Congress and is currently under committee review. This means it hasn't advanced to a full House vote yet. The bill's provisions and any limitations on who could claim this deduction remain under evaluation. No timeline for further action has been publicly announced.