The ASA said auto consumers stand to benefit as well. Individuals who purchase a car between now and the end of 2028 and report less than $100,000 in their tax filing can deduct up to $10,000 in car loan interest payments until the end of the 2028 tax filing year. The Senate’s version sets stricter qualifying requirements. Only new vehicles would qualify, and those vehicles must be assembled in the U.S.
Adapting to electric vehicle technology requires additional investments that many repair shops struggle to afford. The ASA said the bill would eliminate nearly all tax credits on consumer EV purchases, resulting in a more gradual increase of EVs on the road. It would also eliminate approximately 50% of EV manufacturing incentives. The House and Senate versions differ in that the Senate version would eliminate fewer EV manufacturing incentives. It would also phase out those incentives sooner than the House version’s timeframes.
The bill passed on a 51-50 vote with Vice President J.D. Vance breaking the tie. The U.S. House of Representatives must approve the Senate’s version before the bill can be sent to President Trump to sign. The U.S. House Rules Committee met on July 2 to move the bill for a vote before the full House.
The ASA said it prefers some provisions in the House version relative to the equivalent provision in the Senate bill, and vice versa, but overall supports the direction of the tax and EV policy provisions.
