,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #cdej  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #ae1 #bjbe,mr4   
,kelly ( ,p5nsylvania 7= himself & ,mr4 
,huiz5ga7 introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,ways &      
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to provide =      
special rules all[+ taxpay]s to d$uct   
qualifi$ pass5g] vehicle loan int]e/    
paid or accru$ dur+ ! taxable ye> on    
c]ta9 indebt$ness1 & = o!r purposes4    
#a4 ,no tax on c> loan int]e/  7a7 ,9   
g5]al ,section #afc7;h7 ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by       
r$esignat+ p>agraph 7#d7 z p>agraph 7#e7
 & by ins]t+ aft] p>agraph 7#c7 ! foll[+
 new p>agraph3  7#d7 ,special rules =   
taxable ye>s #bjbd ?r\gh #bjbh relat+ to
 qualifi$ pass5g] vehicle loan int]e/   
7,a7 ,9 g5]al ,9 ! case ( taxable ye>s  
beg9n+ aft] ,decemb] #ca1 #bjbd1 & be=e 
,janu>y #a1 #bjbi1 = purposes ( ?is     
subsection ! t]m p]sonal int]e/ %all n  
include qualifi$ pass5g] vehicle loan   

int]e/4  7,b7 ,qualifi$ pass5g] vehicle 
loan int]e/ def9$  7i7 ,9 g5]al ,=      
purposes ( ?is p>agraph1 ! t]m qualifi$ 
pass5g] vehicle loan int]e/ means any   
int]e/ :i* is paid or accru$ dur+ !     
taxable ye> on indebt$ness incurr$ by ! 
taxpay] aft] ,decemb] #ca1 #bjbd1 = !   
pur*ase (1 & t is secur$ by a fir/ li5  
on1 an applicable pass5g] vehicle =     
p]sonal use4  7ii7 ,exceptions ,su* t]m 
%all n include any am\nt paid or incurr$
 on any ( ! foll[+3  7,i7 ,a loan to    
f9ance fleet sales4  7,,ii7 ,a p]sonal  
ca% loan secur$ by a vehicle previ\sly  
pur*as$ by ! taxpay]4  7,,iii7 ,a loan  
incurr$ = ! pur*ase ( a comm]cial       
vehicle t is n us$ = p]sonal purposes4  
7,,iv7 ,any lease f9anc+4  7,v7 ,a loan 
to f9ance ! pur*ase ( a vehicle ) a     
salvage title4  7,,vi7 ,a loan to f9ance
 ! pur*ase ( a vehicle int5d$ to be us$ 
= scrap or p>ts4  7,c7 ,limitations  7i7
 ,doll> limit ,! am\nt ( int]e/ tak5    
into acc\nt by a taxpay] "u subp>agraph 
7,b7 = any taxable ye> %all n exce$     

#aj1jjj4  7ii7 ,limitation bas$ on      
modifi$ adju/$ gross income  7,i7 ,9    
g5]al ,! am\nt :i* is o!rwise all[able z
 a d$uction "u subsection 7a7 z qualifi$
 pass5g] vehicle loan int]e/ 7det]m9$   
)\t reg>d to ?is clause & aft] !        
application ( clause 7i77 %all be r$uc$ 
7b n bel[ z]o7 by #bjj = ea* #a1jjj 7or 
portion !re(7 by :i* ! modifi$ adju/$   
gross income ( ! taxpay] = ! taxable ye>
 exce$s #ajj1jjj 7#bjj1jjj 9 ! case ( a 
jo9t return74  7,,ii7 ,modifi$ adju/$   
gross income ,= purposes ( ?is clause1 !
 t]m modifi$ adju/$ gross income means !
 adju/$ gross income ( ! taxpay] = !    
taxable ye> increas$ by any am\nt       
exclud$ f gross income "u section #iaa1 
#ica1 or #icc4  7,d7 ,applicable pass5g]
 vehicle ,! t]m applicable pass5g]      
vehicle means any vehicle--  7i7  7,i7  
:i* is manufactur$ prim>ily = use on    
public /reets1 roads1 & highways1       
7,,ii7 :i* has at lea/ #b :eels1 &      
7,,iii7 :i* is a c>1 m9ivan1 van1 sport 
utility vehicle1 pickup truck1 or       

motorcycle1  7ii7 :i* is an all-t]ra9   
vehicle 7design$ = use on l&71 or  7iii7
 any trail]1 camp]1 or vehicle 7design$ 
= use on l&7 :i*-- 7,i7 is design$ to   
provide tempor>y liv+ qu>t]s =          
recreational1 camp+1 or seasonal use1 & 
7,,ii7 is a motor vehicle or is design$ 
to be t[$ by1 or affix$ to1 a motor     
vehicle4  ,su* t]m %all n include any   
vehicle ! f9al assembly ( :i* did n     
occur )9 ! ,unit$ ,/ates4  7,e7 ,o!r    
def9itions & special rules ,= purposes (
 ?is p>agraph--  7i7 ,all-t]ra9 vehicle 
,! t]m all-t]ra9 vehicle means any      
motoriz$ vehicle :i* has #c or #d :eels1
 a seat design$ to be /raddl$ by !      
op]ator1 & h&leb>s = /e]+ control4  7ii7
 ,f9al assembly ,= purposes (           
subp>agraph 7,d71 ! t]m f9al assembly   
means ! process by :i* a manufactur]    
produces a vehicle at1 or ?r\gh ! use (1
 a plant1 factory1 or o!r place f :i* ! 
vehicle is deliv]$ to a deal] or import]
 ) all compon5t p>ts necess>y = !       
me*anical op]ation ( ! vehicle includ$ )

 ! vehicle1 :e!r or n ! compon5t p>ts   
are p]man5tly in/all$ 9 or on ! vehicle4
  7iii7 ,treatm5t ( ref9anc+            
,indebt$ness describ$ 9 subp>agraph 7,b7
 %all include indebt$ness t results f   
ref9anc+ any indebt$ness describ$ 9 su* 
subp>agraph1 & t is secur$ by a fir/ li5
 on ! applicable pass5g] vehicle )      
respect to :i* ! ref9anc$ indebt$ness 0 
incurr$1 b only to ! ext5t ! am\nt ( su*
 result+ indebt$ness does n exce$ !     
am\nt ( su* ref9anc$ indebt$ness4  7iv7 
,relat$ p>ties ,indebt$ness describ$ 9  
subp>agraph 7,b7 %all n include any     
indebt$ness ow$ to a p]son :o is relat$ 
7)9 ! mean+ ( section #bfg7;b7 or       
#gjg7;b77#a77 to ! taxpay]4  4  7b7     
,d$uction all[$ :e!r or n taxpay]       
itemizes ,section #fb7;a7 ( su* ,code is
 am5d$ by ins]t+ aft] p>agraph 7#ba7 !  
foll[+ new p>agraph3  7#bb7 ,qualifi$   
pass5g] vehicle loan int]e/ ,s mu* ( !  
d$uction all[$ by section #afc7;a7 z is 
attributable to ! exception "u section  
#afc7;h77#d77;,a74  4  7c7 ,report+     

,subp>t ,b ( "p ,,iii ( sub*apt] ,a (   
*apt] #fa ( su* ,code is am5d$ by add+  
at ! end ! foll[+ new section3          
#fjej;,,aa4 ,returns relat+ to          
applicable pass5g] vehicle loan int]e/  
receiv$ 9 trade or bus9ess f individuals
  7a7 ,9 g5]al ,any p]son--  7#a7 :o is 
engag$ 9 a trade or bus9ess1 &  7#b7 :o1
 9 ! c\rse ( su* trade or bus9ess1      
receives f any individual int]e/        
aggregat+ #fjj or m = any cal5d> ye> on 
a specifi$ pass5g] vehicle loan1  %all  
make ! return describ$ 9 subsection 7b7 
) respect to ea* individual f :om su*   
int]e/ 0 receiv$ at su* "t z ! ,secret>y
 may provide4  7b7 ,=m & mann] ( returns
 ,a return is describ$ 9 ?is subsection 
if su* return-- 7#a7 is 9 su* =m z !    
,secret>y may prescribe1 &  7#b7        
conta9s-- 7,a7 ! "n & address ( !       
individual f :om ! int]e/ describ$ 9    
subsection 7a77#b7 0 receiv$1  7,b7 !   
am\nt ( su* int]e/ receiv$ = ! cal5d>   
ye>1  7,c7 ! am\nt ( out/&+ pr9cipal on 
! specifi$ pass5g] vehicle loan z ( !   

beg9n+ ( su* cal5d> ye>1  7,d7 ! date ( 
! orig9ation ( su* loan1  7,e7 ! ye>1   
make1 & model ( ! applicable pass5g]    
vehicle :i* secures su* loan 7or su* o!r
 description ( su* vehicle z ! ,secret>y
 may prescribe71 &  7,f7 su* o!r        
in=mation z ! ,secret>y may prescribe4  
7c7 ,/atem5ts ,to be furni%$ to         
individuals ) respect to :om in=mation  
is requir$ ,e p]son requir$ to make a   
return "u subsection 7a7 %all furni% to 
ea* individual ^: "n is requir$ to be   
set =? 9 su* return a writt5 /atem5t    
%[+--  7#a7 ! "n1 address1 & phone numb]
 ( ! in=mation contact ( ! p]son requir$
 to make su* return1 &  7#b7 ! in=mation
 describ$ 9 subp>agraphs 7,b71 7,c71    
7,d71 & 7,e7 ( subsection 7b77#b7 )     
respect to su* individual 7& su*        
in=mation z is describ$ 9 subsection    
7b77#b77;,f7 ) respect to su* individual
 z ! ,secret>y may provide = purpoeses (
 ?is subsection74  ,! writt5 /atem5t    
requir$ "u ! prec$+ s5t5ce %all be      
furni%$ on or be=e ,janu>y #ca ( ! ye>  

foll[+ ! cal5d> ye> = :i* ! return "u   
subsection 7a7 0 requir$ to be made4    
7d7 ,def9itions ,= purposes ( ?is       
section-- 7#a7 ,9 g5]al ,t]ms us$ 9 ?is 
section :i* are also us$ 9 p>agraph 7#d7
 ( section #afc7;h7 %all h ! same mean+ 
z :5 us$ 9 su* p>agraph4  7#b7 ,specifi$
 pass5g] vehicle loan ,! t]m specifi$   
pass5g] vehicle loan means ! indebt$ness
 describ$ 9 section #afc7;h77#d77;,b7 ) 
respect to any applicable pass5g]       
vehicle4  7e7 ,regulations ,! ,secret>y 
%all issue su* regulations or o!r       
guidance z may be necess>y or           
appropriate to c>ry out ! purposes ( ?is
 section1 includ+ regulations or o!r    
guidance to prev5t ! duplicate report+ (
 in=mation "u ?is section4  4  7d7      
,con=m+ am5dm5ts  7#a7 ,section         
#ef7;e77#a77;,b7 ( su* ,code is am5d$ by
 /rik+ section #afc7;h77#d7 & ins]t+    
section #afc7;h77#e74  7#b7 ,! table (  
sections = subp>t ,b ( "p ,,iii (       
sub*apt] ,a ( *apt] #fa ( su* ,code is  
am5d$ by add+ at ! end ! foll[+ new     

item3  ,sec4 #fjej;,,aa4 ,returns relat+
 to applicable pass5g] vehicle loan     
int]e/ receiv$ 9 trade or bus9ess f     
individuals4  4  7e7 ,effective date ,! 
am5dm5ts made by ?is section %all apply 
to indebt$ness incurr$ aft] ,decemb]    
#ca1 #bjbd4