H.R. 3450 would allow taxpayers to deduct up to $10,000 per year in interest paid on car loans for vehicles purchased after December 31, 2024, through the end of 2028. The deduction applies to loans on passenger vehicles—including cars, motorcycles, minivans, and recreational vehicles—that were finally assembled in the United States, but excludes commercial vehicles, fleet purchases, and salvage-title vehicles. The deduction phases out for higher earners, reducing by $200 for each $1,000 of modified adjusted gross income above $100,000 ($200,000 for joint returns). The bill also requires lenders to report vehicle loan interest of $600 or more annually to the IRS. This change primarily benefits middle-income car buyers by making vehicle financing costs deductible, similar to mortgage interest, and is set to expire at the end of 2028 unless extended.