Moreno Formalizes Income Tax Deduction for American Car Buyers
Sen. Bernie Moreno (R-Ohio) has introduced the United States Automobile Consumer Assistance and Relief (USA CAR) Act, formalizing a tax policy repeatedly floated by President Donald Trump: If passed, the bill would allow Americans who finance the purchase of U.S.-made vehicles to deduct any interest paid from their taxable income.
“For decades, the American auto sector has been devastated by bad trade deals and bad leaders, who shipped American manufacturing jobs overseas while flooding our market with cheap foreign cars,” Moreno writes in a statement. “Thanks to President Trump, we are finally ensuring every car sold in America is made in America and that working Americans can actually afford to buy a car in the first place. I’m proud to lead the way in the Senate.”
The deduction would be available for interest paid starting Jan. 1, 2025, and apply to all vehicles for which final assembly is performed in U.S. plants.
In November, shortly after Moreno became the first auto dealer elected to the U.S. Senate and Trump was elected to his second term, the Ohio Republican promised he and Trump would “overhaul” the auto industry.
In February, Moreno introduced the Transportation Freedom Act, targeting federal and state emissions standards and creating new tax deductions for automakers who employ U.S. workers.
