hold on there's just too much going on in Congress lmao...
Excludes automobiles from 'collectible' tax category for capital gains.
Introduced by Mr. Perry.
Introduced in the House, referred to committee.
This bill, known as the 'CAR Act,' proposes to change the federal tax code so that automobiles are no longer treated as 'collectibles' for capital gains tax purposes. This means profits from selling certain cars would be taxed at a potentially lower rate, similar to other investments, rather than the higher rate for collectibles. The bill was introduced by Mr. Perry in the House of Representatives on February 13, 2026, and is currently awaiting review by the Committee on Ways and Means.
Introduced Feb 13, 2026
The bill was introduced in the House of Representatives and has been referred to the Committee on Ways and Means. For it to become law, the committee must approve it, then it needs to pass a vote in the full House, then pass the Senate, and finally be signed by the President. There are no scheduled votes or hearings at this time.
Currently, if you sell a car that's considered a 'collectible' and make a profit, that profit is taxed at a higher maximum capital gains rate than other types of investments. If this bill passes, those profits would be taxed at the general long-term capital gains rates (which are usually lower), potentially saving you money. This change would specifically affect cars that appreciate in value and are held for profit. The new rules would start applying to tax years beginning after December 31, 2025.
Supporters Say
Supporters may argue the bill simplifies the tax code and encourages investment in collector automobiles.
Critics Say
Critics might suggest this provides a tax break primarily for the wealthy and could reduce government revenue.
Those in favor could contend that treating automobiles differently from other collectibles is a fair adjustment, aligning their tax treatment with other appreciated assets. They might also argue it stimulates the market for collector vehicles. On the other hand, opponents could raise concerns that this change disproportionately benefits individuals with high-value assets and might be seen as creating a tax loophole for a specific category of personal property, potentially impacting federal funds.