Patrick O’Brien is getting straight to work as director of government affairs and compliance for the National Independent Automobile Dealers Association

Having just joined the association in recent days, O’Brien already sent a letter to leadership of the Senate Finance Committee.

NIADA is seeking language clarifying that the proposed tax deduction for interest paid on auto financing also can apply to used vehicles.

NIADA supports the tax provision in H.R. 1, the One Big, Beautiful Bill Act (OBBBA), allowing for qualified borrowers to deduct the interest paid on auto loans up to $10,000 for tax years 2025 through 2028, provided that the financed vehicle is manufactured in the United States.

Having passed through the House, the proposal is now with the Senate.

“NIADA strongly supports this provision, and we encourage you to include a similar provision in the Senate’s version of the OBBBA as you proceed with committee and floor consideration,” O’Brien wrote to Sen. Mike Crapo, who is the Senate Finance Committee chairman, and Sen. Ron Wyden, who is the ranking member

“However, despite being well-intentioned, we believe the current language is inadvertently limiting,” O’Brien continued in his letter. “While NIADA and other stakeholders in the automotive industry interpret the implicit objective of this provision as applying to both new and used vehicle sales, the language itself is silent on that important distinction. Explicitly clarifying the applicability of this provision in the Senate’s legislative text will bring much-needed certitude to the used automobile industry and the customers it serves.

O’Brien then emphasized how important used vehicles are nowadays as an affordable transportation option.

“Demand for used automobiles has been steadily increasing over the past several years. This is partly due to supply chain concerns arising from the 2020 global pandemic, as well as the high cost of purchasing a new vehicle in today’s automotive market,” O’Brien wrote.

“NIADA members are committed to providing their customers with reliable vehicles at competitive prices and fair terms,” he continued. “Many of these customers come from modest means. Their vehicle is a financial lifeline. It provides safe transportation to and from work and enables them to manage their households and other personal commitments.

“By clarifying the provision, they can avail themselves of this modest tax deduction to help offset some of the costs associated with purchasing the vehicle and reallocate those funds to meet the myriad of demands occupying their lives. As consumers, this means redistributing those savings into local commerce and fostering economic growth, which is one of the OBBBA’s overarching objectives,” O’Brien went on to say.

With O’Brien now NIADA’s voice on Capitol Hill, he closed by reiterating his availability to the committee and other lawmakers.

“NIADA is ready to work with you and your staff to provide clear and concise language to ensure this important deduction does not unintentionally limit meaningful tax relief for a substantial and active segment of the automotive marketplace,” O’Brien wrote.