The IRS has confirmed a new tax deduction allowing eligible American car buyers to save up to $10,000 annually on interest paid for new, American-made vehicle loans. This deduction, part of the "No Tax on Car Loan Interest" provision, is available for tax years 2026 through 2028. It applies to interest paid on loans for personal use vehicles purchased after December 31, 2024, and can be claimed even by those taking the standard deduction. Specific eligibility and reporting rules are being finalized.