Automobiles were also included in the One Big Beautiful Bill Act. Here’s a “fast take” on the two key changes.
New Car Loans
Between 2025 and 2028, a $10,000 deduction on new car loan interest will be available, but some limitations apply (such as the car needing to be brand-new). First, the deduction will be reduced by $200 if your gross income exceeds $100,000 or $200,000 if you are married. Plus, the car's final assembly must occur in the U.S. to qualify for the deduction.
Termination of EV Subsidies
EV credits for new and used cars will end after September 30, 2025.Note:Some EV home improvements (such as windows) and residential energy credits (adding solar) end after December 31, 2025.
These new rules may influence how some of you view your current car or your future car-buying ideas. If that’s you, consider speaking with a tax professional who is familiar with the new rules before making any changes.