Millions of American car buyers will soon get some tax relief thanks to the One Big Beautiful Bill Act (OBBBA) signed by President Donald Trump on July 4. The tax break is taking effect starting from 2025 and running through the end of 2028 for auto loans on new car purchases. However, the deduction has income limitations, and not all vehicles qualify. At the same time, the OBBBA eliminated the federal tax credit on electric vehicles after September 30, 2025 (barring a few loophole EV purchases viable past that cutoff date).
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