Buffalo, NY (WBEN) - The recently passed multi-Trillion Dollar tax bill may bring a big shakeup to the auto industry with incentives both coming and going that will impact how people buy.
First, simple advice for anyone looking into an Electric Vehicle.
"Hurry up and buy a car," said Jill on Money Host Jill Schlesinger. "This bill basically eliminates or limits a lot of tax credits that were designed to encourage investment and production in clean energy, including the purchase of electric vehicles."
That includes the federal tax credit of up to $7,500 for new, and $4,000 for used EVs. Car buyers will have until September 30 to qualify for those credits before they go away.
For anyone in the market, EV or not, there's also new incentive to buy American.
The new law would allow taxpayers deduct up to $10,000 of auto loan interest from their taxable income, and begins to be phased out for individuals earning more than $100,000 or couples making over $200,000. It will apply only to new cars bought in 2025 through 2028. Qualifying cars must be assembled in the United States.
"If I were somebody with a gigantic car payment right now and I'm driving maybe a foreign car, I'd bring in my foreign car, get an American car and the interest would then be deductible up to $10,000," said Esther Gulyas, CEO of EG Tax.
The AAA reports the average driver pays an annual finance charge of $1,332.
