TSLA422.240-21.06%
GM74.860-2.89%
F13.410-1.07%
RIVN13.790-0.73%
CYD50.000-1.02%
HMC26.1800.51%
TM190.6800.18%
CVNA67.170-2.36%
PAG162.180-6.88%
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AN184.150-8.5%
GPI313.620-20.71%
ABG179.170-13.92%
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TSLA422.240-21.06%
GM74.860-2.89%
F13.410-1.07%
RIVN13.790-0.73%
CYD50.000-1.02%
HMC26.1800.51%
TM190.6800.18%
CVNA67.170-2.36%
PAG162.180-6.88%
LAD261.920-12.84%
AN184.150-8.5%
GPI313.620-20.71%
ABG179.170-13.92%
SAH73.960-3.88%
TSLA422.240-21.06%
GM74.860-2.89%
F13.410-1.07%
RIVN13.790-0.73%
CYD50.000-1.02%
HMC26.1800.51%
TM190.6800.18%
CVNA67.170-2.36%
PAG162.180-6.88%
LAD261.920-12.84%
AN184.150-8.5%
GPI313.620-20.71%
ABG179.170-13.92%
SAH73.960-3.88%

Senator Moreno proposes tax bill reforms to support U.S. auto industry

The former auto dealer turned Ohio senator proposes major changes to EV credits, tariffs, and car loan deductions in the entire tax package
Senator Bernie Moreno is leading a push to reshape key automotive provisions in President Trump’s tax package.

Senator Bernie Moreno (R-Ohio), a former auto dealer and first-term lawmaker, is leading a push to reshape key automotive provisions in President Donald Trump’s tax package, currently under Senate consideration. Moreno has released a six-point plan to adjust the legislation with car buyers, truck operators, and U.S. manufacturers in mind.

Moreno’s top priority is narrowing the scope of the car loan interest deduction, a central Trump-backed proposal, to cover only brand-new personal-use passenger vehicles assembled in the U.S. This would revise the broader House version, which includes a wider range of vehicles. Trump expressed support for this change during a meeting with Senate Finance Committee Republicans on Wednesday, according to a source familiar with the conversation.

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In addition, Moreno is calling for the accelerated termination of current electric vehicle (EV) tax credits, from the House’s December 31, 2025, deadline to September 30, 2025. He also proposes increasing annual EV and hybrid vehicle fees from $250 to $500 and from $100 to $250, respectively, while slashing the federal excise tax on large trucks from 12% to 2%. Moreno argues these shifts would modernize the nation’s vehicle fleet, stimulate economic activity, and reduce emissions by replacing older trucks with safer, more efficient models.

To further support domestic manufacturers, Moreno is advocating for a 50% tariff on tire imports from countries outside the USMCA trade bloc, targeting Chinese tire products he describes as unsafe. He also supports eliminating fines related to Corporate Average Fuel Economy (CAFE) violations—an item already included in the Senate Commerce Committee’s legislative draft.

In addition, Moreno has circulated a printed card detailing his automotive priorities among Senate Republicans and has received favorable feedback. He has also drafted legislation for the Senate Finance Committee, reflecting these proposals.

Outside the automotive sphere, Moreno has suggested additional changes to the GOP tax package, including lowering the state and local tax deduction cap from $ 10,000 to $15,000 and implementing Medicaid work requirements starting in early 2026. However, he remains broadly supportive of the House-passed bill, emphasizing unity among Senate Republicans to prevent what he describes as a looming $4 trillion tax increase.

Moreno’s full six-point automotive plan includes:

  1. Limiting auto loan interest deductions to new U.S.-made personal vehicles.
  2. Ending EV tax credits by September 30, 2025.
  3. Raising annual EV and hybrid fees to $500 and $250.
  4. Imposing a 50% tariff on non-USMCA tire imports.
  5. Eliminating CAFE standard penalties.
  6. Reducing the federal excise tax on trucks from 12% to 2%.

Moreno said the GOP now has a rare opportunity to make car ownership more accessible and reshape automotive policy in line with Trump’s vision to eliminate auto loan interest and dismantle EV mandates.

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