H.R.3191 - Made in America Motors Act (119th Congress)
Summary
H.R. 3191, the "Made in America Motors Act," proposes an amendment to the Internal Revenue Code of 1986. The bill introduces an above-the-line deduction for interest paid on qualified motor vehicle loans. This deduction is capped at $2,500 per year.
Expected Effects
If enacted, this bill would reduce the taxable income for individuals who purchase qualifying vehicles with a loan. This could incentivize the purchase of vehicles assembled in the United States. It may also stimulate the domestic auto industry.
Potential Benefits
- Potential tax savings for individuals purchasing qualified motor vehicles.
- Encouragement of domestic auto manufacturing through the 'final assembly' requirement.
- Increased demand for vehicles assembled in the United States, potentially boosting the American auto industry.
- Simplification of tax filing for those claiming the deduction, as it is an above-the-line deduction.
- Could make vehicle ownership more affordable for some individuals.
Potential Disadvantages
- Potential reduction in federal tax revenue due to the new deduction.
- Complexity in defining 'qualified motor vehicle' and 'final assembly,' potentially leading to disputes.
- The $2,500 cap may not significantly impact higher-income individuals.
- Could create a disadvantage for consumers who prefer foreign-made vehicles or those not assembled in the US.
- Potential for increased vehicle prices if demand surges without a corresponding increase in supply.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution (Preamble), as it aims to promote economic activity within the United States. Article I, Section 8, grants Congress the power to lay and collect taxes, duties, imposts, and excises, which implicitly includes the power to create tax deductions and incentives. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).