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These autos quality for Secretary Bessent's $10,000 auto loan relief program
Yahoo Finance· 2026-01-10 16:33
Core Viewpoint - The U.S. government is introducing a significant tax break for car buyers, aimed at making new vehicle purchases more affordable, particularly for U.S.-assembled vehicles [3][4]. Group 1: Tax Break Details - The new tax rule allows eligible taxpayers to deduct $10,000 per year in auto loan interest for cars purchased during Trump's second term [3]. - The tax deduction is designed to lower monthly costs and enhance car ownership affordability for families [4]. - The tax credit applies solely to vehicles assembled in the U.S., thereby supporting domestic manufacturing [4][5]. Group 2: Eligibility Criteria - Vehicles eligible for the $10,000 tax credit must be U.S.-assembled and purchased between 2025 and 2028 [5]. - Individual buyers earning over $100,000 and couples earning over $200,000 will see the benefits phase out [6]. - Eligible vehicles include new cars, SUVs, vans, pickup trucks, and motorcycles weighing under 14,000 pounds, purchased for personal use [9]. Group 3: Market Impact - The tax credit is expected to influence the sales of U.S. automakers, as it incentivizes the purchase of domestically assembled vehicles [4][8]. - Popular imported models, even if sold by U.S. automakers, will not qualify for the tax break, potentially affecting their sales [8].