Have you taken out a new car loan? The IRS has unveiled proposed regulations on the car loan interest deduction provision under the One Big Beautiful Bill Act. For loans taken out after Dec. 31, 2024, on new, U.S.-assembled vehicles used primarily for personal purposes, taxpayers may be able to deduct up to $10,000 annually (through 2028) in interest, whether they itemize or claim the standard deduction. The proposal outlines which vehicles and loans qualify, how “personal use” is defined, eligibility rules and new reporting requirements for lenders. Public comments are open through Feb. 2, 2026, with a hearing scheduled for Feb. 24, 2026. Contact us with questions.
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