I 
112TH CONGRESS 
1ST SESSION H. R. 3756 
To amend the Internal Revenue Code of 1986 to allow a deduction for 
interest paid on indebtedness incurred in connection with the purchase 
of a new automobile or light truck. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 20, 2011 
Ms. RICHARDSON 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 a 
deduction for interest paid on indebtedness incurred in 
connection with the purchase of a new automobile or 
light truck. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Drivers Accelerated 
Interest Deductibility Act of 2011’’ or the ‘‘Drivers AID 
Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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strengthen the automotive manufacturing industry 
and the national economy. 
(8) Payment of nonmortgage interest payments, 
such as automobile loan debt, was deductible for 
Federal income tax purposes for 73 years, from the 
inception of the Internal Revenue Code in 1913 until 
Congress ended the deduction in 1986 when the Tax 
Reform Act of 1986 was passed. 
SEC. 3. DEDUCTION FOR INTEREST ON INDEBTEDNESS IN-
CURRED TO ACQUIRE A PASSENGER CAR OR 
LIGHT TRUCK. 
(a) IN GENERAL.—Paragraph (2) of section 163(h) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘and’’ at the end of subparagraph (E), by striking 
the period at the end of subparagraph (F) and inserting 
‘‘, and’’, and by adding at the end the following new sub-
paragraph: 
‘‘(G) in the case of the acquisition of a 
qualified vehicle, any qualified vehicle interest 
if, for the calendar quarter preceding the date 
on which such vehicle is acquired, the average 
national unemployment rate for such quarter is 
not less than 7 percent.’’. 
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(b) QUALIFIED VEHICLE INTEREST.—Paragraph (5) 
of section 163(h) of the Internal Revenue Code of 1986 
is amended to read as follows: 
‘‘(5) QUALIFIED VEHICLE INTEREST.—For pur-
poses of paragraph (2)(G) and this paragraph— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
vehicle interest’ means any interest which— 
‘‘(i) is properly chargeable on indebt-
edness incurred in acquiring a qualified ve-
hicle, and 
‘‘(ii) is properly allocable to the 36- 
month period described in subparagraph 
(B)(ii). 
‘‘(B) LIMITATIONS.— 
‘‘(i) 
DOLLAR
LIMITATION.—The 
amount of interest taken into account 
under this paragraph (after the application 
of subparagraph (A)(ii)) with respect to a 
qualified vehicle shall not exceed $5,000. 
‘‘(ii) PERIOD
LIMITATION.—Only in-
terest on such indebtedness properly allo-
cable to the 36-month period beginning on 
the date such indebtedness is incurred may 
be taken into account under this para-
graph. 
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‘‘(C) QUALIFIED VEHICLE.— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied vehicle’ means a motor vehicle— 
‘‘(I) the original use of which 
commences with the taxpayer, 
‘‘(II) which is acquired for use by 
the taxpayer and not for resale, 
‘‘(III) with respect to which no 
payment is made under section 1302 
of the Consumer Assistance to Recycle 
and Save Act of 2009, 
‘‘(IV) which is made by a manu-
facturer, 
‘‘(V) which is treated as a motor 
vehicle for purposes of title II of the 
Clean Air Act, 
‘‘(VI) which has a gross vehicle 
weight rating of 6,000 pounds or less, 
and 
‘‘(VII) which is a passenger auto-
mobile or light truck. 
‘‘(ii) MOTOR
VEHICLE.—The term 
‘motor vehicle’ means any vehicle which is 
manufactured primarily for use on public 
streets, roads, and highways (not including 
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a vehicle operated exclusively on a rail or 
rails) and which has at least 4 wheels. 
‘‘(iii) OTHER
TERMS.—The terms 
‘automobile’, ‘passenger automobile’, ‘light 
truck’, and ‘manufacturer’ have the mean-
ings given such terms in regulations pre-
scribed by the Administrator of the Envi-
ronmental Protection Agency for purposes 
of the administration of title II of the 
Clean Air Act (42 U.S.C. 7521 et seq.). 
‘‘(D) AVERAGE NATIONAL UNEMPLOYMENT 
RATE.—The average national unemployment 
rate for a calendar quarter means the national 
unemployment rate means the average of the 
monthly national unemployment rates for 
months in the calendar quarter, as reported by 
the Bureau of Labor Statistics, Department of 
Labor.’’. 
(c) DEDUCTION ALLOWED IN COMPUTING ADJUSTED 
GROSS INCOME.—Subsection (a) of section 62 of such 
Code is amended by inserting before the last sentence the 
following new paragraph: 
‘‘(22) QUALIFIED
VEHICLE
INTEREST.—The 
deduction 
allowed 
by 
reason 
of 
section 
163(h)(2)(G).’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to vehicles acquired 
on or after January 1, 2011. 
Æ 
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