The High Costs of Trump’s ‘Big Beautiful’ New Car Loan Deduction
By letting some buyers deduct interest on auto loans, the GOP megabill promises to lower transportation bills. But this tax break could do the opposite.
Trucks for sale at a dealership in Torrance, California, in April.
Photographer: Jay L Clendenin/Getty Images North America via Getty Images
On July 4, US President Donald Trump signed the $3.4 trillion fiscal package that is a cornerstone of his legislative agenda. The sweeping “One Big Beautiful Bill Act” contains a plethora of tax cuts that largely benefit the wealthiest Americans while ramping up border security, nixing clean energy subsidies and slashing Medicaid.
Within the 330 pages of this megabill is a provision presented as aid to the $1.6 trillion US auto industry. For the first time, Americans will be able to deduct interest payments on new car loans when calculating their taxes.