This Act may be cited as the Collector Automobile Relief Act or the CAR Act.

(a) In general Section 1(h)(5)(A) of the Internal Revenue Code of 1986 is amended by inserting and excluding automobiles after collectible (as defined in section 408(m) without regard to paragraph (3) thereof. (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2025.