Guidance is available on the “no tax on car loans” provision under the One, Big, Beautiful Bill. This deduction applies to interest paid on cars purchased after Dec. 31, 2024. The new tax benefit is for both taxpayers who take the standard deduction and those who itemize deductions.
Businesses that receive $600 or more from any individual interest, for any calendar year, on a qualified passenger vehicle loan must comply with reporting requirements. See the news release for more information about eligibility requirements for taxpayers and lenders.