The newest Internal Revenue Service (IRS) data from mid-May shows 1.4 million tax filers took advantage of the tax credit on interest for a new vehicle loan so far this year.
Some background: The tax incentive was part of the “One Big Beautiful Bill” passed by Congress and signed by President Donald Trump July 4, 2025.
According to the IRS, the deduction amount tallied $2.6 billion for this year.
The deduction of up to $10,000 for individuals who paid interest on a loan to purchase a qualified vehicle after Dec. 31, 2024.
The vehicle must be a new personal-use vehicle with final assembly in the United States.
Between the lines: The tax deduction did have income limits. The deduction was reduced by $200 for each $1,000 the adjusted gross income exceeds $100,000 ($200,000 for joint return).
IRS CEO Frank J. Bisignano and U.S. Senator Bernie Moreno (R-OH) spoke in the Cleveland area Friday on the tax credit.
“I am proud to have spearheaded the auto loan interest tax deduction to allow hardworking Ohioans to afford American-made vehicles,” Moreno said.
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