The Treasury Department is implementing a policy that eliminates taxes on car loan interest, a move meant to lower costs, Treasury Secretary Scott Bessent said on Jan. 7.
The policy, which the secretary called “No Tax on American Car Loan Interest,” is being implemented under the Trump administration-backed One Big Beautiful Bill Act, signed into law last summer.
The tax cut will be “putting money back in the pockets of working and middle-class families,” Bessent wrote in a statement on X.
“For new U.S.-assembled vehicles purchased in 2025–2028, eligible taxpayers can deduct up to $10,000 per year in auto loan interest, whether they itemize or take the standard deduction.”…
US Treasury Implementing Trump-Backed ‘No Tax’ on Car Loan Interest, Bessent Says
