Legislation introduced by U.S. Rep. Bill Huizenga (R-MI) would create a new federal tax deduction for auto loan interest on American-made cars.
The legislation, designed to incentivize buying American, is based on a policy priority proposed by President Donald Trump during the 2024 election campaign. The Made in America Motors Act lowers the cost of financing a vehicle, Huizenga said, potentially saving taxpayers hundreds of dollars each year.
“The Made in America Motors Act is a win for American taxpayers, autoworkers, and Michigan,” Huizenga said. “Making interest on car loans tax deductible was a key campaign promise made by President Trump. The Made in America Motors Act delivers on this promise by giving individuals and families a financial incentive to buy American, which in turn supports good-paying automotive jobs in Michigan and across the nation.”
Specifically, the legislation would create a new tax deduction of up to $2,500 annually for the interest paid on auto loans, make the deduction available to all taxpayers, including those who take the standard deduction, and apply only to vehicles with final assembly in the United States.
The legislation is supported by the Ford Motor Company.
“As America’s top auto producer, we’re grateful to work with Congressman Huizenga on policies that grow the American auto industry. The Made in America Motors Act will help Americans purchase a car and gain the freedom to move, while supporting American auto workers,” the company said in a statement.