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Story summary
- Taxpayers who bought new cars in 2025 may qualify for a tax deduction on car loan interest for vehicles assembled in the United States.
- The deduction is capped at $10,000 annually.
- The policy reflects U.S. President Donald J. Trump's efforts to support domestic auto production.
- The tax cut is projected to cost $31 billion over ten years.
- The IRS issued guidance on eligibility for lenders related to this tax benefit.
