How to Save Big on a New Car by Stacking Trump and Biden’s Tax Breaks
If you’re eyeing a new electric vehicle, the next three months could be your golden window to save thousands—thanks to a rare overlap of tax credits from both Trump and Biden. Here’s how to make the most of this unique moment:
◾ Biden’s Inflation Reduction Act gives you up to $7,500 off new EVs or hydrogen fuel cell cars—as long as they’re built in North America. But this generous credit vanishes after September 30, under Trump’s incoming tax overhaul.
◾ Trump’s “Big Beautiful Bill”, starting January 1, 2025, offers up to $10,000 in annual tax deductions on interest from auto loans—if the car weighs under 14,000 pounds and is U.S.-assembled. It applies to vehicles bought between 2025 and 2028.
Smart Stacking: Here’s How It Pays Off
Let’s say you’re financing a $45,000 EV at 6.7% over 36 months. You could deduct:
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$1,412 in 2025
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$2,114 in 2026
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$1,114 in 2027
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$159 in 2028
Total interest savings: $4,799
Add Biden’s $7,500 tax credit before it expires, and you’re looking at over $12,000 in combined savings—just for buying smart and timing it right. 
Is an EV Still Worth It?
Yes—if you’re all-in on future tech and long-term fuel savings. While EVs cost about $1,500 more than gas cars upfront (even after the credit), you’ll spend $5,000 less on fuel over five years. Used EVs offer even deeper discounts—averaging $20,000 less—plus a $4,000 used EV credit (though this doesn’t qualify for Trump’s incentive).
A Few Fine Print Reminders: Save Big on a New Car
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Trump’s credit phases out for incomes over $150K (single) or $250K (joint). No fleets or leases allowed.
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Biden’s credit also has income caps: $150K (single) and $300K (joint). Vehicle must be for personal use.
If you want a tech-packed EV without breaking the bank, this is your chance to ride the political tax wave. Stack the credits, slash your payments, and drive into the future.