New Made-in-USA Cars Qualify for Trump Tax Perk, IRS Says

Core Points - Taxpayers purchasing new cars in 2025 may qualify for a tax break if the vehicle is made in the US, as per IRS guidance [1][2] - The tax deduction applies to new cars assembled in the US from 2025 through the end of 2028, with buyers needing to verify the final assembly location via the vehicle information label or VIN [2][3] - Some buyers may not qualify for the tax break even if they purchase new vehicles in 2025 due to assembly location [3] Industry Insights - Among the 25 most popular new car models sold domestically in 2024, 14 were assembled solely in the US, including models like Ford F-series trucks and Chevy Silverado [4] - If the deduction had been in effect for 2024, approximately 4 million out of 7 million units sold would have qualified for the deduction, highlighting the potential impact on consumer behavior [5] - The tax break initiative is part of a broader strategy by the administration to support domestic auto production and consumption, although its overall effect on the auto industry remains uncertain due to macroeconomic factors [6][7]