Trump’s $10,000 tax break for car owners promises big savings, but reaching it may require a six-figure car. Here’s why

When President Donald Trump signed the One Big Beautiful Bill Act in July 2025, the administration promoted a sweeping new tax break for drivers. On its website, the White House described it as “Made-in-America Tax Breaks: Interest deduction for loans on new American-made vehicles” (1, 2). With total U.S. auto loan debt surpassing $1.6 trillion, the policy seems like a no-brainer (3). Must Read As written, however, the law includes a number of eligibility requirements: income thresholds, vehicle quali ...