Auto Interest Deduction Proposal Tweaked to Expand Eligibility

An ally to President Donald Trump in Congress is updating a measure codifying one of his signature campaign promises to expand auto interest tax deduction eligibility beyond wealthier filers.

Legislation introduced by Sen. Bernie Moreno (R-Ohio) and Rep. David Taylor (R-Ohio) last month lets taxpayers write off the interest on loans for cars assembled in the US, invoking pushes by Trump and Treasury Secretary Scott Bessent to make it easier for auto buyers, notwithstanding the yo-yo of tariff threats on the industry.

Moreno, a former car dealer, hoped the write-off would extend “beyond the standard deduction,” given that “a lot ...