Share feedback on H.R. 1’s auto loan interest deductions
Credit unions can provide feedback on the H.R. 1 vehicle loan interest tax deductions via America’s Credit Unions’ latest Regulatory Comment alert.
Following advocacy efforts to obtain clarity for credit unions, the Treasury in January issued a proposal establishing a deduction of up to $10,000 for interest on qualified passenger vehicle loans for tax years 2025-2028, as well as new information reporting requirements and penalties for businesses receiving $600 or more in such interest annually.
Credit unions face new, mandatory information reporting and recordkeeping obligations, and must issue Internal Revenue Service (IRS) information returns for qualifying loans, furnish borrower statements with required disclosures, and ensure accuracy to avoid penalties.
Comments can be submitted to America’s Credit Unions by Jan. 28, and to Treasury by Feb. 2. The Internal Revenue Service has scheduled a public hearing Feb. 24, starting at 10 a.m. Eastern.
For additional H.R. 1 information, America’s Credit Unions’ member-only Compliance Library contains resources that include a recorded webinar and FAQs on the auto loan interest deduction, including this proposal.