Tax Breaks for Auto Loans Included in Upcoming Reconciliation Bill

The upcoming reconciliation bill – known as “One, Big, Beautiful Bill” by White House staff — includes language that would create an above-the-line tax deduction on car loan interest up to $10,000. If passed, this would apply to auto loans taken out between 2025 through 2028, and only vehicles assembled in the U.S. would be eligible. Economists expect sales of passenger vehicles to drop as tariffs begin to materialize and car prices increase. 

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