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139 STAT. 177 PUBLIC LAW 119–21—JULY 4, 2025 of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. ‘‘(D) APPLICABLE PASSENGER VEHICLE.—The term ‘applicable passenger vehicle’ means any vehicle— ‘‘(i) the original use of which commences with the taxpayer, ‘‘(ii) which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails), ‘‘(iii) which has at least 2 wheels, ‘‘(iv) which is a car, minivan, van, sport utility vehicle, pickup truck, or motorcycle, ‘‘(v) which is treated as a motor vehicle for pur- poses of title II of the Clean Air Act, and ‘‘(vi) which has a gross vehicle weight rating of less than 14,000 pounds. Such term shall not include any vehicle the final assembly of which did not occur within the United States. ‘‘(E) OTHER DEFINITIONS AND SPECIAL RULES.—For pur- poses of this paragraph— ‘‘(i) FINAL ASSEMBLY.—For purposes of subpara- graph (D), the term ‘final assembly’ means the process by which a manufacturer produces a vehicle at, or through the use of, a plant, factory, or other place from which the vehicle is delivered to a dealer with all component parts necessary for the mechanical oper- ation of the vehicle included with the vehicle, whether or not the component parts are permanently installed in or on the vehicle. ‘‘(ii) TREATMENT OF REFINANCING.—Indebtedness described in subparagraph (B) shall include indebted- ness that results from refinancing any indebtedness described in such subparagraph, and that is secured by a first lien on the applicable passenger vehicle with respect to which the refinanced indebtedness was incurred, but only to the extent the amount of such resulting indebtedness does not exceed the amount of such refinanced indebtedness. ‘‘(iii) RELATED PARTIES.—Indebtedness described in subparagraph (B) shall not include any indebtedness owed to a person who is related (within the meaning of section 267(b) or 707(b)(1)) to the taxpayer.’’. (b) DEDUCTION ALLOWED TO NON-ITEMIZERS.—Section 63(b), as amended by the preceding provisions of this Act, is amended by striking ‘‘and’’ at the end of paragraph (5), by striking the period at the end of paragraph (6) and inserting ‘‘and’’, and by adding at the end the following new paragraph: ‘‘(7) so much of the deduction allowed by section 163(a) as is attributable to the exception under section 163(h)(4)(A).’’. (c) REPORTING.— (1) IN GENERAL.—Subpart B of part III of subchapter A of chapter 61 is amended by adding at the end the following new section: