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U.S. Rep. Bill Huizenga (R-Michigan) has introduced the Made in America Motors Act, a new bill designed to support the American auto industry by offering a tax break on loans for U.S.-assembled vehicles. Under the proposed legislation, car and truck buyers would be eligible for a tax deduction of up to $2,500 per year on interest paid for vehicles weighing under 14,000 pounds and purchased in 2025 or later.
The goal, Huizenga said, is to encourage Americans to “buy American” by making U.S.-manufactured cars more financially accessible, a campaign promise echoed by former President Donald Trump during a Detroit speech last year. The bill applies to all qualifying taxpayers, regardless of whether they itemize deductions, and excludes any vehicle loan already eligible for a different deduction.
“This is a win for taxpayers, auto workers, and the U.S. economy,” Huizenga stated. “It’s about strengthening American manufacturing, protecting jobs, and delivering on our promise to prioritize Made-in-America products.”
Major auto manufacturers, including Ford Motor Co., have voiced support. Ford released a statement highlighting how the proposal would help consumers purchase vehicles and maintain transportation freedom while supporting U.S. auto workers.
Trump has backed tax deductions for car loans, Social Security contributions, and overtime pay as part of his economic strategy. However, economists warn that the deductions could reduce federal revenue by an estimated $10 billion annually, raising concerns over deficit expansion, particularly as Republicans are considering extending theTrump-era tax cuts from 2017.
The legislation arrives as automakers face heightened costs due to Trump’s proposed tariffs on imported vehicles and parts, raising fears of higher car prices for consumers. If passed, Huizenga’s plan could help mitigate those effects by making U.S.-built cars more affordable for domestic buyers.
Huizenga, who has represented West Michigan since 2011 and is rumored to be considering a U.S. Senate run in 2026, said the bill demonstrates a clear commitment to American manufacturing and family-focused tax relief.
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