Tax Perk for Auto Loans
The bill introduces a new benefit: car buyers could deduct up to $10,000 in interest paid on vehicle loans. The deduction applies from 2025 to 2028—but only for new cars assembled in the U.S. Buyers won’t need to itemize to claim it, but the benefit phases out for individuals earning over $100,000. With average loan interest now topping 8%, the savings could reach $2,000 over five years.
EV Tax Credits Face the Chop
One of the biggest EV incentives may disappear. The bill proposes ending the $7,500 tax credit for new EVs and $4,000 for used ones. These credits, already limited by income and vehicle price, would vanish at the end of 2025 for most automakers. This change would hit brands like Tesla and Ford hardest—though newcomers like Rivian and Lucid may still benefit briefly. Buyers on the fence may want to act fast.
Annual EV Fees Incoming
To replace lost gas tax revenue, the bill adds a new federal fee: $250 per year for EVs and $100 for hybrids. Many states already charge something similar. Under the bill, states would be required to enforce these fees—or risk penalties. EV ownership costs could increase, even if fuel savings remain strong.
Temporary Delay in Dealer Rules
The bill also pauses the FTC’s CARS Rule, which mandates full transparency in dealer pricing. Until September 30, dealers won’t be required to disclose all fees or get consent for add-ons. While temporary, it could lead to more “surprise” costs at the dealership—especially for first-time EV buyers.
And Then There Are Tariffs
Though not in the bill, Trump’s proposed tariffs could increase vehicle prices by thousands. Imports and even U.S.-branded models built in Mexico or Canada would be affected. That includes many EV components sourced globally, making domestic EVs potentially more expensive.
Bottom Line
The ‘One Big Beautiful Bill Act’ introduces big shifts. From new costs to vanishing credits, it’s a wake-up call for EV buyers to plan—and possibly act—sooner than later.
