by House of Representatives passes bill on tax incentives for auto loans
The U.S. House of Representatives has approved a bill providing tax deductions for interest on auto loans. This initiative, originally proposed by Donald Trump, could be in effect for four years—from late 2024 to early 2029. The annual deduction limit will be up to $10,000.
The bill, which is part of the so-called “One Big Beautiful Bill Act,” aims to stimulate automobile production in the U.S. As stated in the document:
“It rewards companies that manufacture their products in America with lower taxes—and allows Americans who buy American-made cars to fully deduct loan interest.”
Terms and limitations
The incentives will apply to passenger cars, trucks, motorcycles, crossovers, and other vehicles assembled in the U.S. However, there are significant restrictions:
Currently, the bill has been sent to the Senate, where it may undergo significant changes due to concerns about increasing national debt and cuts to social programs. Experts believe that without major amendments, its chances of approval are low.
This initiative is controversial: on one hand, it could support local auto manufacturing; on the other—the restrictions and complex conditions make it inaccessible to many consumers. This particularly affects the middle class, which traditionally forms the backbone of the new car market.
