Deducting Interest

[Michael G.]

I heard on radio today our President wants to bring back deductions on all cars
loans, BUT only the cars made in the U.S.

What cars are completely made in the states anymore??

[retiredguy123]

Probably none, but the law will most likely not require the entire car to be made completely in the U.S.

[Spectreron]

This is from GROK, latest available info.

"Based on the latest available data from the Cars.com American-Made Index (AMI) and other sources reflecting 2025 model-year vehicles, here are the top 10 most American-made cars as of April 10, 2025. The AMI ranks vehicles based on factors like assembly location, parts content, engine origin, transmission origin, and U.S. manufacturing workforce. Note that rankings can shift slightly year to year, but these reflect the most current trends:

Tesla Model Y - Assembled in Fremont, California, and Austin, Texas, this electric SUV consistently tops the list due to its high domestic parts content and all-American production.
Honda Passport - Built in Lincoln, Alabama, this SUV stands out with its U.S.-sourced V6 engine and strong domestic manufacturing presence.
Volkswagen ID.4 - Produced in Chattanooga, Tennessee, this electric crossover benefits from VW’s growing U.S. manufacturing footprint.
Tesla Model S - Assembled in Fremont, California, this sedan maintains a high ranking with significant U.S. parts and labor.
Honda Odyssey - Made in Lincoln, Alabama, this minivan scores well due to its American assembly and parts sourcing.
Honda Ridgeline - Also from Lincoln, Alabama, this unibody pickup combines U.S. production with a domestically built V6 engine.
Toyota Camry - Manufactured in Georgetown, Kentucky, the 2025 model (now exclusively hybrid) remains a staple of American-made vehicles.
Jeep Gladiator - Assembled in Toledo, Ohio, this pickup climbs the ranks with its U.S. production and workforce contributions.
Tesla Model X - Built in Fremont, California, this SUV rounds out Tesla’s strong showing with high domestic content.
Lexus TX - Produced in Princeton, Indiana, this new luxury SUV enters the top 10 with its all-American powertrain and assembly.
These rankings reflect vehicles that not only are assembled in the U.S. but also prioritize American-sourced components and labor, making them the "most American" by the AMI’s methodology. Tesla’s dominance highlights its fully U.S.-based production, while Honda, Toyota, and others showcase significant investments in American manufacturing. Traditional U.S. brands like Ford and GM often fall lower due to globalized supply chains or less consistent domestic sourcing, though models like the Ford Mustang and Chevrolet Corvette can still rank well in broader lists. For the absolute latest 2025 AMI (typically released mid-year), keep an eye on Cars.com updates, but this list aligns with current data and trends as of now."

[kingofbeer]

This is from GROK, latest available info.

"Based on the latest available data from the Cars.com American-Made Index (AMI) and other sources reflecting 2025 model-year vehicles, here are the top 10 most American-made cars as of April 10, 2025. The AMI ranks vehicles based on factors like assembly location, parts content, engine origin, transmission origin, and U.S. manufacturing workforce. Note that rankings can shift slightly year to year, but these reflect the most current trends:

Tesla Model Y - Assembled in Fremont, California, and Austin, Texas, this electric SUV consistently tops the list due to its high domestic parts content and all-American production.
Honda Passport - Built in Lincoln, Alabama, this SUV stands out with its U.S.-sourced V6 engine and strong domestic manufacturing presence.
Volkswagen ID.4 - Produced in Chattanooga, Tennessee, this electric crossover benefits from VW’s growing U.S. manufacturing footprint.
Tesla Model S - Assembled in Fremont, California, this sedan maintains a high ranking with significant U.S. parts and labor.
Honda Odyssey - Made in Lincoln, Alabama, this minivan scores well due to its American assembly and parts sourcing.
Honda Ridgeline - Also from Lincoln, Alabama, this unibody pickup combines U.S. production with a domestically built V6 engine.
Toyota Camry - Manufactured in Georgetown, Kentucky, the 2025 model (now exclusively hybrid) remains a staple of American-made vehicles.
Jeep Gladiator - Assembled in Toledo, Ohio, this pickup climbs the ranks with its U.S. production and workforce contributions.
Tesla Model X - Built in Fremont, California, this SUV rounds out Tesla’s strong showing with high domestic content.
Lexus TX - Produced in Princeton, Indiana, this new luxury SUV enters the top 10 with its all-American powertrain and assembly.
These rankings reflect vehicles that not only are assembled in the U.S. but also prioritize American-sourced components and labor, making them the "most American" by the AMI’s methodology. Tesla’s dominance highlights its fully U.S.-based production, while Honda, Toyota, and others showcase significant investments in American manufacturing. Traditional U.S. brands like Ford and GM often fall lower due to globalized supply chains or less consistent domestic sourcing, though models like the Ford Mustang and Chevrolet Corvette can still rank well in broader lists. For the absolute latest 2025 AMI (typically released mid-year), keep an eye on Cars.com updates, but this list aligns with current data and trends as of now."
Good luck with that passing. Interest would be small if the interest rate was a special promo rate. Deduction or tax credit ?

[Pballer]

The standard deduction was greatly increased in 2017; in reality personal exemptions were done away with and folded into the standard deduction. To take the interest deduction you will probably need to take itemized deductions. Unless you pay a lot in mortgage interest, property taxes and state taxes, or have very large medical bills and charitable deductions, the auto interest deduction will probably be worth very little if anything to you.

[Aces4]

The standard deduction was greatly increased in 2017; in reality personal exemptions were done away with and folded into the standard deduction. To take the interest deduction you will probably need to take itemized deductions. Unless you pay a lot in mortgage interest, property taxes and state taxes, or have very large medical bills and charitable deductions, the auto interest deduction will probably be worth very little if anything to you.

If one's expenses are greater than the standard deduction, that interest write-off may be important to them. Particularly if many medical bills/expenses have pushed them to itemizing.

[CarlR33]

LOL, Tesla, the one vehicle in the cross hairs now. I thought I heard like other vehicles parts are made in other countries even if assembled in the USA (your search does not totally support that though). I see from another search they produce some of the batteries for Tesla's in China, Ouch

[Topspinmo]

I heard on radio today our President wants to bring back deductions on all cars
loans, BUT only the cars made in the U.S.

What cars are completely made in the states anymore??

Just want we need more tax breaks for few..:a040:

[Topspinmo]

LOL, Tesla, the one vehicle in the cross hairs now. I thought I heard like other vehicles parts are made in other countries even if assembled in the USA (your search does not totally support that though). I see from another search they produce some of the batteries for Tesla's in China, Ouch


Where else do you think batteries are made and made cheap not under control of EPA. Nothing like going across southern border and letting the polluted air drift to north north east. :BigApplause:

[biker1]

Tesla’s factories in Nevada, California, and Texas make batteries for Teslas. Some batteries do/did also come from China.


Where else do you think batteries are made and made cheap not under control of EPA. Nothing like going across southern border and letting the polluted air drift to north north east. :BigApplause:

[Jimmay]

I heard on radio today our President wants to bring back deductions on all cars
loans, BUT only the cars made in the U.S.

What cars are completely made in the states anymore??
The intent was to buy American which would be General Motors, Ford, Chrysler/Ram

[darkim]

As with current tax laws … it’s based on the final production assembly and ready for sale.

[USOTR]

The standard deduction was greatly increased in 2017; in reality personal exemptions were done away with and folded into the standard deduction. To take the interest deduction you will probably need to take itemized deductions. Unless you pay a lot in mortgage interest, property taxes and state taxes, or have very large medical bills and charitable deductions, the auto interest deduction will probably be worth very little if anything to you.

This is exactly what I was thinking.

[Cliff Fr]

I heard on radio today our President wants to bring back deductions on all cars
loans, BUT only the cars made in the U.S.

What cars are completely made in the states anymore??

He means cars from a factory in the USA. Whether or not they contain parts from other countries is irrelevant.

[USOTR]

Unions demanding livable salaries, broke the tritonal American (GM, Ford and Chrysler) car builder. For them to come back to building in the US they would have to build new factories that are like Tesla automated with human assist factory's. This is not an overnight process and their new factory development would be years out. The next question is can American auto makers compete in a world market in quality of workmanship and pricing. I believe they can as Tesla is doing it and making a profit while doing it nicely.

[MandoMan]

I heard on radio today our President wants to bring back deductions on all cars
loans, BUT only the cars made in the U.S.

What cars are completely made in the states anymore??

There seems to be quite a large difference between “wanting to bring back deductions” and actually getting such a law through Congress. Promised to us last year was:
No tax on tip income,
No tax on Social Security income for those with extra money coming in,
Higher deduction limits for real estate taxes.
However, despite wishes and promises, those things turn out to cost a lot more than one might think, and the money lost to cutting those taxes has to come from somewhere.
Where could that money come from? The government could stop returning IRS income tax money to the 40% at the bottom who pay no federal income tax. That would be pretty unpopular with a lot of voters. It could revoke the years of tax cuts that have primarily benefited those who make a lot more money than we do. That would be unpopular with people who can make million dollar contributions to inaugural ball committees. Congress could pay for it all by simply stopping the standard deduction on federal income taxes, letting people pay federal taxes without those deductions, as happens in states that charge state income taxes. That would be unpopular with everyone making enough so that those thousands of dollars we get back every year matter—95%. It would certainly raise my taxes a lot, yet it wouldn’t be considered a tax hike.
Or, we could charge tariffs on everything imported from other countries, claiming that isn’t a tax on US but on the other countries. However, given that it will raise sticker prices for a huge percentage of things we actually buy, it will have the same effect as a tax. To the extent that we buy things made overseas, WalMart shoppers, this will hit us pretty hard, especially those of us who work hard or did and spend most of our income instead of investing it. Perhaps a deduction for car loan interest could come out of that. But that may not work if tariffs come and go at whim.
So, don’t hold your breath.

[retiredguy123]

There seems to be quite a large difference between “wanting to bring back deductions” and actually getting such a law through Congress. Promised to us last year was:
No tax on tip income,
No tax on Social Security income for those with extra money coming in,
Higher deduction limits for real estate taxes.
However, despite wishes and promises, those things turn out to cost a lot more than one might think, and the money lost to cutting those taxes has to come from somewhere.
Where could that money come from? The government could stop returning IRS income tax money to the 40% at the bottom who pay no federal income tax. That would be pretty unpopular with a lot of voters. It could revoke the years of tax cuts that have primarily benefited those who make a lot more money than we do. That would be unpopular with people who can make million dollar contributions to inaugural ball committees. Congress could pay for it all by simply stopping the standard deduction on federal income taxes, letting people pay federal taxes without those deductions, as happens in states that charge state income taxes. That would be unpopular with everyone making enough so that those thousands of dollars we get back every year matter—95%. It would certainly raise my taxes a lot, yet it wouldn’t be considered a tax hike.
Or, we could charge tariffs on everything imported from other countries, claiming that isn’t a tax on US but on the other countries. However, given that it will raise sticker prices for a huge percentage of things we actually buy, it will have the same effect as a tax. To the extent that we buy things made overseas, WalMart shoppers, this will hit us pretty hard, especially those of us who work hard or did and spend most of our income instead of investing it. Perhaps a deduction for car loan interest could come out of that. But that may not work if tariffs come and go at whim.
So, don’t hold your breath.
Doesn't the Government just borrow the money and raise the national debt?

[crash]

I heard on radio today our President wants to bring back deductions on all cars
loans, BUT only the cars made in the U.S.

What cars are completely made in the states anymore??

You would be able to deduct the interest only if you exceed the standard deduction. Not too many do these days at $25,000 for a couple.

[talonip]

I heard on radio today our President wants to bring back deductions on all cars
loans, BUT only the cars made in the U.S.

What cars are completely made in the states anymore??
Tesla

[Bill14564]

You would be able to deduct the interest only if you exceed the standard deduction. Not too many do these days at $25,000 for a couple.

That will depend on how the law is changed.

One way would be as you mentioned, car interest would be part of your itemized deductions which would then need to exceed the standard deduction.

The other way would be to subtract the interest directly from your income outside of itemization.

Logically, it ought to be the former but ...

[airstreamingypsy]

My Mercedes was made in Alabama. (I was shocked) Glad I don't have a Rolls. <g>

[TerriFriend]

I think is meant for all cars with American businesses. For instance, Ford, Chevy, etc. I bet some of those, or many parts for those, are still made in other countries, but if the incentive is to increase revenue for American companies, maybe they will bring all production to the US, especially if they will get a tax break by doing so. You will not get a tax break for Benz, Audi, Toyota, Volkswagen, Mini Cooper, etc. because their makers are not in the US.

I heard on radio today our President wants to bring back deductions on all cars
loans, BUT only the cars made in the U.S.

What cars are completely made in the states anymore??

[DrHitch]

If such a law ever passes, you will still have to accumulate enough interest expense to be above the standard deduction....getting enough items on schedule A to exceed the standard deduction is a lot tougher to do since the IRS raised the default

[Bill14564]

I think is meant for all cars with American businesses. For instance, Ford, Chevy, etc. I bet some of those, or many parts for those, are still made in other countries, but if the incentive is to increase revenue for American companies, maybe they will bring all production to the US, especially if they will get a tax break by doing so. You will not get a tax break for Benz, Audi, Toyota, Volkswagen, Mini Cooper, etc. because their makers are not in the US.

One bill that has been introduced specifically calls out the location of final assembly and has no mention of company ownership or incorporation.

If the car rolled off a boat then it would not be included while if it rolled out of an assembly plant within the US it would. This may leave open the possibility of cars without bumpers or windshield wipers rolling off a boat and into a plant for final assembly where the bumpers and wipers are attached thus making them eligible.

[Michael G.]

The next question is can American auto makers compete in a world market in quality of workmanship and pricing. I believe they can as Tesla is doing it and making a profit while doing it nicely.

Their making a profit producing a product that is 50% junk.
That profit wouldn't mean anything if people don't buy the junk.

[Justputt]

Where else do you think batteries are made and made cheap not under control of EPA. Nothing like going across southern border and letting the polluted air drift to north north east. :BigApplause:

Not sure how much longer that will be when Tesla moves to the Na based batteries, MUCH cheaper. Not a big fan of EVs, but we purchased a Pathfinder (made in TN) and would consider a Tesla Model 2 later this year when released, since the release price sounds like it'll be in the $20k range. That would be great for running around locally, beaches, parks, Disney/Universal/Seaworld/etc.

[Cliff Fr]

Just want we need more tax breaks for few..:a040:

The purpose if it is to increase demand for car assembled in the USA which us a good thing

[midiwiz]

I heard on radio today our President wants to bring back deductions on all cars
loans, BUT only the cars made in the U.S.

What cars are completely made in the states anymore??

it's not completely, it applies to cars coming out of a plant in the US.

[mikempp]

Unions demanding livable salaries, broke the tritonal American (GM, Ford and Chrysler) car builder. For them to come back to building in the US they would have to build new factories that are like Tesla automated with human assist factory's. This is not an overnight process and their new factory development would be years out. The next question is can American auto makers compete in a world market in quality of workmanship and pricing. I believe they can as Tesla is doing it and making a profit while doing it nicely.

Trade laws are what sent jobs overseas. Only new trade laws will bring them back.