U.S. Senator Bernie Moreno (R-Ohio) has filed a bill that would allow taxpayers to write off the interest paid on vehicles made in the U.S.
Moreno, who previously owned car dealerships in Ohio, said the United States Automobile Consumer Assistance and Relief Act will incentivize American manufacturing and help consumers with affordability.
“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. Thanks to President [Donald] 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,” Moreno said in a press release announcing the bill.
Trump mentioned the tax law change to allow vehicle interest to be deductible prior to Moreno filing the bill.
According to the bill filed by Moreno, only vehicles with final assembly in the United States before being delivered to the dealer will qualify for the tax exemption.
Hance Scarborough, the lobby firm representing NIADA, reached out to Moreno’s staff for clarification on whether the tax exemption would apply to used vehicles. Moreno’s policy advisor stated that used vehicles should qualify, assuming the vehicle meets the criteria for final assembly in the U.S.
The bill has been sent to the Senate Finance Committee. The Congressional Budget Office has not released an estimate for the bill.
