BBB-American made auto loan credit

I think Tesla is about it.



Elon was just pretending to be upset

From Grok, so notice the last paragraph:

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What's the auto loan interest deduction benefit on the big beautiful bill?

The "One Big Beautiful Bill Act" includes a temporary auto loan interest deduction for vehicles with final assembly in the United States, effective for tax years 2025 through 2028. Here are the key details:

Deduction Amount: Taxpayers can deduct up to $10,000 annually of auto loan interest for qualifying vehicles, which include cars, minivans, vans, SUVs, pickup trucks, and motorcycles. The House version also includes all-terrain vehicles, trailers, and recreational vehicles, but the Senate version excludes these.

Eligibility: The deduction applies only to new vehicles (not used ones in the Senate version) purchased after December 31, 2024, with the first loan on the vehicle. The vehicle must be manufactured primarily for use on public streets, roads, and highways.Income Phaseout: The deduction phases out at a 20% rate for single filers with a modified adjusted gross income (MAGI) exceeding $100,000 ($200,000 for joint filers). It is fully phased out at $150,000 for singles and $250,000 for couples.Above-the-Line Deduction: This is an "above-the-line" deduction, meaning it’s available to taxpayers regardless of whether they itemize or take the standard deduction, benefiting a broader range of households.Impact:

For the average new car loan of about $43,000 at 8.64% interest (2025 data), borrowers pay roughly $2,748 in interest in the first year, which could be fully deducted if under the $10,000 cap, saving approximately $500–$800 in taxes for middle-income households, depending on their tax bracket.

Only 1% of auto loans exceed $110,000, which would be needed to maximize the $10,000 deduction, typically for luxury vehicles like Ferrari or Rolls-Royce. Thus, most buyers will see smaller tax savings, averaging $500 in the first year, decreasing over time as interest payments shrink.Limitations:

The deduction is temporary, expiring after 2028, so a loan taken in 2027 would only get two years of benefits.

It excludes used cars (Senate version) and commercial vehicles.Higher earners see reduced benefits due to the phaseout, and low earners with no tax liability may not benefit at all.Purpose: The provision aims to incentivize American-made vehicle purchases and support domestic manufacturing, aligning with President Trump’s campaign promise. However, critics note it may primarily benefit higher-income households buying expensive vehicles and could cost $31–$57.8 billion in lost revenue over four years.

For specific savings, taxpayers should consult a tax professional, as benefits depend on loan size, interest rate, income, and tax bracket.

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Just make sure to tell them you won't pay one penny over sticker price and you should be fine.

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I’m hoping now I can get that King Ranch F-250 that I’ve always wanted…. Lol

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Only 1% of auto loans exceed $110,000, which would be needed to maximize the $10,000 deduction, typically for luxury vehicles like Ferrari or Rolls-Royce.

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Show me the 110k-ish Rolls or Ferrari! LOL.

But, yes, this deduction is mostly handing the upper class some change. The deductions for middle class consumer vehicles will be much more modest. I probably won’t paid 10k in interest over the lifetime of my wife’s SUV loan. Great credit and significant down payment will do that.

And I don’t think foreign made automobiles can apply?

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. It is fully phased out at $150,000 for singles and $250,000 for couples.

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Well that sucks

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And I don’t think foreign made automobiles can apply?

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"Final assembly" has to occur on American soil. And the wealthy are who purchase higher sticker price which also adds to tax revenue collection, while creating used car inventory when they sell or trade for their next vehicle. Got to stimulate new auto sales.

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. It is fully phased out at $150,000 for singles and $250,000 for couples.


Well that sucks

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Especially for the OT.

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this deduction is mostly handing the upper class

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lol dummies