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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1957 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                H. R. 1957

 To amend the Internal Revenue Code of 1986 to allow the deduction of 
                 certain interest on automobile loans.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 29, 1995

Mr. Brown of Ohio (for himself, Mr. Dellums, Mr. Lipinski, Mr. Gilman, 
   Mr. Kildee, Mr. Gene Green of Texas, Mr. Torres, Mr. Clyburn, Mr. 
Frost, Mr. Stupak, Miss Collins of Michigan, Mr. Thompson, Mr. Fattah, 
 Mr. Evans, Mr. Klink, and Ms. Kaptur) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 
 To amend the Internal Revenue Code of 1986 to allow the deduction of 
                 certain interest on automobile loans.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Auto-Tax Relief Act''.

SEC. 2. DEDUCTION FOR CERTAIN INTEREST ON AUTOMOBILE LOANS.

    (a) In General.--
            (1) Allowance of deduction.--Paragraph (2) of section 
        163(h) of the Internal Revenue Code of 1986 (relating to 
        interest) is amended--
                    (A) in subparagraph (D), by striking ``and'',
                    (B) in subparagraph (E), by striking the period and 
                inserting ``, and'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(F) any interest paid or accrued on indebtedness 
                which is incurred in the acquisition of a qualified 
                automobile and is secured by such automobile.''
            (2) Definition of qualified automobile.--Subsection (h) of 
        section 163 of such Code is amended by adding at the end the 
        following new paragraph:
            ``(6) Qualified automobile.--For purposes of this 
        subsection, the term `qualified automobile' means an automobile 
        (as defined by section 4064(b)(1)), if--
                    ``(A) the percentage specified on the label 
                required by subsection (b)(1)(A) of the American 
                Automobile Labeling Act (15 U.S.C. 1950(b)(1)(A)) 
                (relating to the percentage of passenger motor vehicle 
                equipment installed on a vehicle within a carline which 
                originated in the United States and Canada) is 60 
                percent or more,
                    ``(B) the price of the automobile (determined in 
                accordance with section 4002(d) and including amounts 
                provided by indebtedness) to the ultimate purchaser is 
                not greater than $35,000, and
                    ``(C) the sale of the automobile to the taxpayer is 
                the 1st retail sale (as defined in section 4002(a)) of 
                the automobile.''
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to interest paid or accrued with respect to automobiles 
        purchased after ________________________.
            (2) Effective only if no sequestration caused.--
        Notwithstanding paragraph (1), the amendments made by this 
        section shall take effect only if, determined as of the 
        fifteenth day after the Congress adjourns to end the first 
        session of the 104th Congress, no sequestration is in effect 
        under section 252 of the Balanced Budget and Emergency Deficit 
        Control Act of 1985 (as determined after the application of 
        paragraph (1)).
                                 <all>
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