The new tax law signed by President Donald Trump creates a federal tax deduction for interest on auto loans. Starting this year, taxpayers can deduct up to $10,000 of interest annually on loans for new vehicles assembled in the U.S. The deduction excludes some high-income earners and vehicles purchased for commercial use. An expert at Cox Automotive estimates that 3.5 million loans could qualify this year. While some taxpayers could save thousands of dollars over several years, analysts are split on whether the new tax break will significantly boost vehicle sales or just influence financing decisions.
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