New tax law lets buyers deduct up to $10,000 in interest on loans for U.S.-assembled vehicles.

A new tax law signed by President Trump allows taxpayers to deduct up to $10,000 annually in interest payments on loans for new U.S.-assembled vehicles from 2025 to 2028. Eligible vehicles include cars, SUVs, vans, and pickup trucks under 14,000 pounds purchased for personal use. The tax break phases out for individuals earning between $100,000 and $150,000 or joint filers earning between $200,000 and $250,000. It is estimated to benefit around 3.5 million new vehicle loans this year.