Car buyers have a lot riding on the ‘Big, Beautiful Bill’ | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Bureaucrats in Washington, D.C., are burning the midnight oil this week to pass President Donald Trump’s massive spending bill, officially known as the One Big Beautiful Bill Act of 2025.

Despite his campaign promise that lowering the debt was one of his administration’s top priorities, Trump’s 1,000-page bill would add $3.3 trillion to the nation’s debt obligation, which sits at an astounding $36 trillion, according to the U.S. Treasury.

The bill will add to the deficit while potentially kicking millions off of Medicaid and Medicare, programs designed for women, children, the disabled and the elderly to get health insurance they could otherwise not afford.

The Congressional Budget Office estimates that 12 million Americans could be thrown off insurance rolls if the bill passes.

So if we plan to spend less on the health care of our most vulnerable citizens, why is the bill expected to explode the deficit?

The short answer is tax cuts.

Other than reducing the deficit, President Trump’s other big campaign promise was to extend the $3.8 trillion in tax cuts that went into effect during his first term.

The cuts are scheduled to expire at the end of the year if Congress doesn’t extend them.

Some may call attempting to reduce the deficit while also lowering income impossible, but Trump has chosen this path.

Income tax cuts aren’t the only ones in the bill.

Auto loan tax relief is also on the table.

Trump’s ‘Big, Beautiful Bill’ proposes car loan interest deduction

President Trump’s bill features a provision to temporarily let car buyers write off up to $10,000 a year in interest paid on qualifying auto loans.

The tax breaks would apply to loans taken out between 2025 and 2028.

The tax credit would only go to buyers who purchase cars assembled in the U.S. So even if you’re buying a Toyota, as long as it’s one of the nearly 2 million vehicles the company builds in the States annually, you’re eligible.

But not popular imported models, even if they’re imported by one of the U.S. Big 3 automakers.

Individual car buyers making more than $100,000 and couples making more than $200,000 would see the benefits begin to phase out.

This legislation passed the House of Representatives, but it is not guaranteed to survive the reconciliation process. The Senate version of the bill has one important difference from the House version.

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Cars built before December 31, 2024, are not eligible.

Also, unlike in the House version, ATVs, trailers, and campers wouldn’t be eligible for the credit.

The auto industry sees a friend in President Trump

It’s no secret that the U.S. auto industry has become dominated by foreign brands over the past few decades.

While General Motors still has the highest market share at 17% and Ford ranks third with a 13% market share, foreign models from Asia round out the top five, according to Cox Automotive data.

So the 25% tariffs he placed on auto imports are playing well in Detroit.

Toyota ranks second with 15% U.S. market share, while Korean brand Hyundai ranks fourth with 11%. Toyota’s fellow Japanese brand, Honda, is fifth in the market, with 9%.

Despite its home-court advantage, Stellantis ranks sixth, with an 8% share.

Japanese auto manufacturers produced 3.28 million vehicles in the U.S.

Toyota sold over 2.3 million vehicles in the U.S. in 2024, a 3.7% year-over-year increase. Between April 2024 and March 2025, the company built 1.96 million units in the U.S.

Honda, Subaru, Nissan, Mazda, and Toyota combined employed nearly 75,000 manufacturing employees in the U.S. last year, so if the bill passes, your favorite Japanese vehicle could be covered.