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Tax Deduction for Interest on "Made in America" Car Loans

This act introduces a new tax deduction for individuals paying interest on loans used to purchase vehicles manufactured in the United States. Citizens can deduct up to $2,500 in interest from their income, potentially lowering their tax bill. These changes aim to encourage the purchase of vehicles assembled in the USA.
Key points
Allows a deduction of up to $2,500 for interest paid on qualified motor vehicle loans.
The deduction applies only to vehicles with final assembly in the United States, weighing less than 14,000 pounds, and having at least 4 wheels.
This deduction is available whether or not an individual itemizes other deductions.
The provisions take effect for taxable years beginning after December 31, 2025.
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Status: Introduced
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Additional Information
Print number: 119_HR_3191
Sponsor: Rep. Huizenga, Bill [R-MI-4]
Process start date: 2025-05-05