From his roots in retail automotive to his bold push for policy reform, former car dealer turned U.S. Senator, Bernie Moreno, is uniquely positioned to speak to the challenges and opportunities facing the automotive industry. In today’s episode of Inside Automotive, Senator Moreno and Jim Fitzpatrick discuss everything from EV mandates to tariffs and what’s in the “One Big Beautiful Bill” that could reshape the future for American automakers and dealers.
Inside the “One Big Beautiful Bill”
Senator Moreno celebrates the One Big Beautiful Bill Act (OBBBA) as a significant win for automakers, car dealers and American workers. He says the bill successfully prevented a $4 trillion tax increase, keeping tax rates stable and permanent for auto dealers.
The bill also expands bonus depreciation, allowing businesses to deduct the entire cost of significant qualifying purchases immediately on their taxes for that year instead of having to spread the cost over several years’ worth of taxes. This will lower a business’s taxes immediately, freeing them up to invest money in other things.
“We’re putting money in the pockets of working Americans. The Golden Age has begun. It’s a great time to be an American, and it’s a great time to be an auto dealer.”
The wealth tax threshold has also been made permanent and indexed for inflation, meaning it will rise over time and continue protecting business owners and families from unfair taxation on assets.
The bill includes several wins for working Americans:
- No tax on tips and overtime, boosting take-home pay.
- The Child Tax Credit was permanently increased from $2,000 to $2,200 per qualifying child, with annual inflation adjustments beginning in 2026.
- Families can now deduct intest on auto loans for American-made vehicles.
The bill also created “Trump Accounts,” a $1,000 federal contribution into index funds for newborns, retroactive to Jan. 1. Families can contribute up to $5,000 annually. Moreno encourages dealers to consider matching the $1,000 as an employee retention tool.
Moreno believes the OBBBA will spark long-term improvements in U.S. manufacturing and innovation. Energy reforms will lower energy costs, banking changes expand access to capital and new trade certainty encourages global investment in American production.
The EV mandate is overturned
The OBBA revoked California’s authority to set its own emission standards and eliminated the EV mandate. In addition, the $7,500 federal new EV and $4,000 used EV subsidies expire on Sept. 30. Moreno advises dealers to sell down their inventory before the deadline and prepare their F&I teams to handle the change properly to avoid mistakes and liability..
For those concerned about losing subsidies, Moreno asks: Why should the government subsidize one powertrain over another? Is it fair for taxpayers to pay for someone else’s car?
He argues EV subsidies distorted the market and caused losses for both OEMs and dealers, while inflating the price of ICE vehicles. Without those policies, Moreno hopes to see the return of sub-$20,000, American-made cars on the roads once again.
Moreno pushes back on the Alliance for Automotive Innovation
The Alliance for Automotive Innovation recently asked the U.S. Department of Justice to review state dealership, franchise, and warranty laws, calling them outdated, anti-competitive and harmful to consumers.
Moreno calls the move “idiotic” and urges both the Alliance and OEMS to reaffirm their support for the franchise dealer system publicly. He warns that manufacturers undermining state laws may face political consequences and backlash from their retail networks.
Trump’s auto tariffs set the new trade standard
Moreno confirms that President Trump’s auto tariff program is finalized:
- 0% tariffs for USMCA-compliant vehicles (with a foreign parts incentive).
- 10% for the EU
- 15% for others
Moreno is blunt: If foreign automakers want to sell cars in America, they can pay the tariff or invest in American manufacturing. There has already been a surge in commitments from companies like Hyundai, Toyota and Honda into the United States under President Trump’s tariff policy. In the first quarter, 51% of the cars sold within the United States were made here. That percentage jumped to 61% in Q2.
Economic outlook and interest rates
The country’s GDP grew 3% last quarter, and the Atlanta Fed projects a 4.8% increase in the next quarter. Moreno credits this to strong investments, energy reforms, and banking and housing relief.
The last piece of the puzzle is to remove Federal Reserve Chairman Jerome Powell, whom Moreno criticizes for keeping interest rates too high despite inflation being under control.
A call to action
Moreno leaves dealers and their teams with an important message: control the variables that you can control. Ignore the noise. Focus on your customers, your teams and your business.
He also calls on car dealers and industry leaders to get politically involved and even consider running for office, saying the country needs more dealer representation in Washington.
