The Made in America Motors Act would allow individual taxpayers to deduct up to $2,500 per year in interest paid on car loans, regardless of whether they itemize other deductions on their tax returns. The deduction applies only to vehicles manufactured in the United States with final assembly completed domestically, and covers standard passenger vehicles weighing less than 14,000 pounds that are financed with loans taken out on or after January 1, 2025. This tax benefit is designed to support American car buyers and domestic automakers by making vehicle purchases more affordable. The deduction would take effect for tax returns filed in 2026 and beyond, covering interest paid in 2026 and later years. The bill does not specify a funding source or authorize any direct spending, as it operates through tax revenue forgone rather than appropriations.
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