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Miami Herald
18-07-2025
- Automotive
- Miami Herald
Trump's auto loan tax break could save working class buyers thousands, experts say
WASHINGTON - A Trump-backed tax holiday on auto loan interest payments could save middle-class Americans several hundred dollars apiece on new U.S.-built vehicle purchases through 2028, according to industry experts. The break comes via a provision in the Republicans' One Big Beautiful Bill Act, a massive tax cut and spending package signed into law by President Donald Trump on July 4. "Auto buyers got an above-the-line tax deduction. That's a rare beast in the zoo of tax policies," economist Patrick Anderson said. He also called it a "sharp U-turn in auto tax policy" from the Biden era, which featured electric vehicle credits used by more affluent customers. There are strings attached to the provision, so not all customers and not all vehicles will qualify. But automakers and analysts alike have cheered the policy change as one that will benefit the working class and nudge buyers toward built-in-America vehicles. "For the subset of taxpayers that are employed, earn between $50,000 and $100,000 in salary, and are ready to buy a new car, this could reduce their cost by between $300 and $900 per year, and for heavy borrowers, over $1,000 per year," Anderson's firm, the Lansing, Michigan-based Anderson Economic Group, wrote in an analysis of the new policy. A separate analysis by automotive and industrial consultancy AlixPartners estimated similar benefits of up to $800 in each of the first and second years of auto loans when interest payments are highest, with total savings of approximately $3,000 over the full term of a given loan. The analysis also suggested that about 1.8 million borrowers per year could benefit. "While the auto-loan interest deduction for domestically produced vehicles would of course benefit consumers directly, this measure could help out automakers and dealers as well - if it nudges affordability upward and helps sustain demand. The proof, as always tough, will be in the final pudding," said Akshay Baliga, a director in the automotive and industrial practice at AlixPartners. Trump promised the auto loan tax break on the campaign trail last year, including during a speech to the Detroit Economic Club in October. At the time, he said the tax policy would help both automakers and consumers dealing with high prices across an industry that was "going out of business." Since then, Michigan U.S. Rep. Bill Huizenga, a Republican, has been a champion of the policy in Congress. He introduced a bill on the topic in May titled the "Made in America Motors Act," which was later folded into the Republicans' broader budget package. "Thanks to the No Tax on Auto Loan Interest included in the One Big Beautiful Bill, millions of Americans will find it more affordable to finance the purchase of a new car, minivan, truck, or SUV that is assembled in the United States," Huizenga said in an emailed statement. He added: "By reducing the federal tax burden by up to $10,000, this provision provides substantial relief to hardworking Americans, not just here in Michigan but across the nation, who have suffered from years of Bidenflation. Importantly, this provision will also spur on Michigan's automotive sector and strengthen the good-paying jobs it supports across our state." The White House has given the auto loan tax break top billing in promoting the legislative package, touting it in social media posts alongside wider-reaching "no tax on tips" and "no tax on overtime" policies. The average MSRP of a new vehicle in June was $51,124, according to Kelley Blue Book. That is the second-highest on record behind December 2024 ($51,990). Policy basics The provision applies "above the line," meaning that eligible tax filers will be able to take advantage of the break, even if they claim the widely used standard deduction on their annual federal submission. Individuals earning less than $100,000 in modified adjusted gross income and couples earning less than $200,000 can get the full benefit of the tax break, but it gradually phases out for higher-income filers. Anderson advised potential buyers to confirm their MAGI before making a purchase, since it tends to be higher than the more commonly known AGI. The Internal Revenue Service explains the difference on its website. The economist also advised buyers to double-check with dealers on where vehicles were assembled, since manufacturers often have different assembly locations for different trims of the same model. For anyone under the income cap looking to use the new deduction, the following basic requirements apply: -Purchases made in 2025 (including before July 4), 2026, 2027 and 2028 -No leases -Final vehicle assembly completed in the United States -Vehicle is either a car, minivan, van, sport utility vehicle, pickup truck, or motorcycle made for use on public streets -Vehicle weight below 14,000 pounds -Vehicle is new and for personal use -Loan made by unrelated parties (no family loans) The policy allows annual deductions of up to $10,000, though few filers are likely to claim deductions that high. The deduction provides no benefit for cash-rich buyers who pay off their vehicle in full upon purchase, and limited benefit to buyers who agree to low-APR financing deals with minimal interest accruing. The average interest rate on auto loans for borrowers with good to excellent credit (670 to 850 credit score) ranged from 5.18% to 6.70% in the first quarter of 2025, according to NerdWallet. For borrowers with nonprime or subprime credit (501-660), rates typically fall between 9.83% and 13.22%. Those rates could rise and fall depending on the length of a loan, with shorter loans drawing lower rates and longer ones drawing higher ones. The most common auto loans are between five and seven years. In practical terms, auto borrowers with strong credit who opt to buy a $30,000 vehicle, make a 20% down payment, and accept a 72-month loan would likely face annual interest payments between $1,200 and $1,700 for the first year of their loan. They could deduct a portion of that from their taxes and expect savings in the range of $140 and $360, depending on their federal income tax bracket. A borrower with weaker but still fair credit participating in a similar transaction would save in the range of $290 to $710, though savings in all cases vary depending on a combination of vehicle price, down payment, loan terms and income. Who benefits most? Anderson said that the "sweet spot" for the new tax policy is "younger workers buying a first or second car, working families that need a family-hauler, and trade workers that need lower-trim trucks for their personal use." His analysis included more than two dozen domestically assembled models that will likely benefit from the deduction, with several from Ford Motor Co., General Motors Co. and Stellantis NV. Those models include the Ford Bronco, Escape and lower-trim F-150s; Chevrolet Traverse, Colorado and lower-trim Silverado; and the Jeep Wrangler and Cherokee. Anderson doubted that the luxury market would see much benefit, since buyers in that segment tend to have higher incomes. He also noted that lower- and medium-income buyers who choose to go into debt to purchase expensive cars will be able to deduct "substantial" interest, though their budgets will take a hit in the process. A full list of eligible vehicles, Anderson predicted, will eventually be published by the IRS. Ivan Drury, the director of insights for Edmunds, said the policy will most benefit buyers with poor credit who need to accept higher interest rates to get an auto loan. Drury also predicted that some buyers might choose to put less money down at the time of purchase or opt into extended warranties or maintenance packages, knowing that they are in line for a tax break at the end of the year. "I think for the dealership, this is very beneficial when someone is financing," he said. "It's another leverage point for a dealership to make things more enticing once you're already in there." He also said the benefit is strong for consumers: "It's almost like, is it too good to be true? When you're paying interest, you're just paying the bank, right? You're not getting more car. Nobody wants to pay for the right to borrow." Industry reaction Drury called the new policy a welcome change for consumers but said it is unlikely to be a "volume buster" that supercharges auto sales. "Is it going to make or break the numbers for an OEM or a dealership? Unlikely," he said. "But it will make consumers feel less sting when they see current interest rates, especially people who've been out of the market for over six years, which is the average age for trading a vehicle in for a new car." Anderson's analysis also noted that the new deduction could help offset price increases from Trump's 25% tariffs on imported auto parts. Several automakers and dealers have cheered the new tax break, including Ford Motor Co., which assembled about 80% of its vehicles in the United States last year. "Customers can rest easy knowing America's best-selling trucks, the F-Series, are all assembled in America and qualify for this deduction," company spokesperson Robyn Jackson said in a statement. "As America's top auto producer, we're glad to see Congress and the Trump administration create policies that lower costs for customers and support the American auto industry at the same time." General Motors Co., which built about half of its vehicles in the United States, also celebrated the move. The manufacturer has launched dedicated landing pages for the tax breaks across its Chevy, GMC and Cadillac websites. "GM and its brands have been the engine of growth for the US auto industry this year, and we don't see that changing," company spokesperson Elizabeth Winter said in a statement. Stellantis NV and the Alliance for Automotive Innovation, the industry's top lobbying group, declined to comment. The United Auto Workers did not immediately respond to a request for comment Thursday. The National Auto Dealers Association suggested the policy might nudge sales upward with average new vehicle prices close to all-time highs. "The new provision allowing qualifying car buyers to deduct auto loan interest is designed to help offset some costs and make certain vehicles more affordable. As a result, it is expected to help stimulate car sales for the industry," spokesperson Amy Wright said. Walt Tutak, the dealer trade inventory manager at Matthews-Hargreaves Chevrolet in Royal Oak, said the tax break was "a great thing" but did not expect it to boost sales significantly. Tutak noted that his dealership leases about 70% of new vehicles, transactions that are not covered by the new policy. He suggested that some buyers might switch to purchasing because of their ability to deduct loan interest but expected the impact to be marginal. "If you have to buy a car, you're going to buy it one way or the other," Tutak said in a phone interview. "I might be wrong, but I don't think it's gonna make any more sales. It's just gonna help the consumer." Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Time of India
17-06-2025
- Business
- Time of India
Elon Musk-owned AI startup xAI's supercomputer facility may have 'air pollution problem'
Human rights group, the National Association for the Advancement of Colored People (NAACP), has filed an intent to sue Elon Musk-owned artificial intelligence startup (xAI). The group announced the legal action this week over concerns about the air pollution caused by the company's supercomputer facility near predominantly Black communities in Memphis. Tired of too many ads? go ad free now The xAI data centre in Memphis , which is powered by gas turbines that emit pollution, started its operations last year, without applying for a permit at first, a report claims. Officials had previously stated an exemption allowed them to operate for up to 364 days without a permit. At a recent news conference, Southern Environmental Law Center (SELC) attorney Patrick Anderson, representing the NAACP, said that no such exemption exists for turbines, and the operation has now exceeded 364 days. The SELC is representing the NAACP in its legal challenge against xAI and its permit application, which is currently under consideration by the Shelby County Health Department. How Elon Musk's xAI is planning to reduce emissions from its supercomputer facility According to a report by the news agency AP, the Musk-owned company has announced that the turbines in its supercomputer facility will feature emissions-reducing technology. xAI also highlighted that the company's significant economic contributions to the city including billions invested in the supercomputer facility, millions paid in local taxes, and the creation of hundreds of jobs. Additionally, xAI said that it is also allocating $35 million to construct a power substation and $80 million for a water recycling plant to support the local utility, Memphis Light, Gas and Water, the report added. However, critics of xAI's supercomputing centre argued that it is straining the power grid and emitting harmful pollutants, including smog, nitrogen oxides, carbon dioxide, and formaldehyde. Critics, including the Southern Environmental Law Center (SELC), say the project violates the Clean Air Act and endangers nearby residents, who already face elevated cancer risks. Tired of too many ads? go ad free now They also claimed that xAI installed 35 turbines without proper oversight or community notification, exceeding the 15 allowed under its permit request. The facility's permit classifies it as an 'area source' for hazardous air pollutants, prompting over 1,700 public comments and a petition to the EPA. LAVA SHARK 5G: 5 reasons to buy!
Los Angeles Times
17-06-2025
- Business
- Los Angeles Times
NAACP files intent to sue Elon Musk's xAI company over supercomputer air pollution
MEMPHIS, Tenn. — The NAACP filed an intent to sue Elon Musk's artificial intelligence company xAI on Tuesday over concerns about air pollution generated by a supercomputer near predominantly Black communities in Memphis. The xAI data center began operating last year, powered by pollution-emitting gas turbines, without first applying for a permit. Officials have said an exemption allowed them to operate for up to 364 days without a permit, but Southern Environmental Law Center attorney Patrick Anderson said at a news conference that there is no such exemption for turbines — and that regardless, it has now been more than 364 days. The SELC is representing the NAACP in its legal challenge against xAI and its permit application, now being considered by the Shelby County Health Department. Musk's xAI said the turbines will be equipped with technology to reduce emissions — and that it's already boosting the city's economy by investing billions of dollars in the supercomputer facility, paying millions in local taxes and creating hundreds of jobs. The company also is spending $35 million to build a power substation and $80 million to build a water recycling plant to the support Memphis, Light, Gas and Water, the local utility. Opponents say the supercomputing center is stressing the power grid, and that the turbines emit smog and carbon dioxide, pollutants that cause lung irritation such as nitrogen oxides, and the carcinogen formaldehyde, experts say. The chamber of commerce in Memphis made a surprise announcement in June 2024 that xAI planned to build a supercomputer in the city. The data center quickly set up shop in an industrial park south Memphis, near factories and a gas-powered plant operated by the Tennessee Valley Authority. The SELC has claimed the use of the turbines violates the Clean Air Act, and that residents who live near the xAI facility already face cancer risks at four times the national average. The group also has sent a petition to the Environmental Protection Agency. Critics say xAI installed the turbines without any oversight or notice to the community. The SELC also hired a firm to fly over the site and saw that 35 turbines — not 15 as the company requests in its permit — are located there. The permit itself says emissions from the site 'will be an area source for hazardous air pollutants.' A permit would allow the health department, which has received 1,700 public comments about the permit, to monitor air quality near the facility. At a community gathering hosted by the county health department in April, many of the people speaking in opposition cited the additional pollution burden in a city that already received an 'F' grade for ozone pollution from the American Lung Association. A statement read by xAI's Brent Mayo at the meeting said the company wants to 'strengthen the fabric of the community,' and estimated that tax revenues from the data center are likely to exceed $100 million by next year. 'This tax revenue will support vital programs like public safety, health and human services, education, firefighters, police, parks and so much more,' said the statement, a copy of which was obtained by the Associated Press. The company also apparently wants to expand: The chamber of commerce said in March that xAI had purchased a 1 million square-foot property at a second location, not far from the current facility. One nearby neighborhood dealing with decades of industrial pollution is Boxtown, a tight-knit community founded by freed slaves in the 1860s. It was named Boxtown after residents used material dumped from railroad boxcars to fortify their homes. The area features houses, wooded areas and wetlands, and its inhabitants are mostly working class residents. Boxtown won a victory in 2021 against two corporations that sought to build an oil pipeline through the area. Valero and Plains All American Pipeline canceled the project after protests by residents and activists led by State Rep. Justin J. Pearson, who called it a potential danger to the community and an aquifer that provides clean drinking water to Memphis. Pearson, who represents nearby neighborhoods, said 'clean air is a human right' as he called for people in Memphis to unite against xAI. 'There is not a person, no matter how wealthy or how powerful, that can deny the fact that everybody has a right to breathe clean air,' said Pearson, who compared the fight against xAI to David and Goliath. 'We're all right to be David, because we know how the story ends,' he said. Sainz writes for the Associated Press. AP writer Travis Loller contributed to this report from Nashville, Tenn.
Yahoo
06-06-2025
- Yahoo
Man accused of burglarizing McHenry home twice arrested after standoff
MCHENRY, Ill. (WGN) — Felony charges have been filed against a man accused of burglarizing a suburban home two different times this week after he was taken into custody on Thursday afternoon following an hours-long standoff in McHenry. According to McHenry police, 44-year-old Patrick Anderson has been charged with two felony counts of residential burglary, one felon count of obstructing justice, as well as misdemeanor counts of resisting a peace officer and criminal damage to property. Anderson was peacefully taken into custody after an hours-long standoff with MPD Thursday in a residential area near Venice Avenue and Court Street, adjacent to the Fox River, due to what police said was an 'isolated' police incident. MPD said what led to the standoff originated three days prior on Monday, when they responded to a residence in the 1200 block of North Green Street in McHenry for a burglary. Three days later on Thursday morning, MPD was called to the same residence for another reported burglary. While investigating, police said they identified Anderson as a suspect. Shortly after the second reported burglary, MPD went to Anderson's residence. When police arrived, he retreated inside and refused to respond to MPD's commands. Read more: Latest Chicago news and headlines According to police, they tried numerous times to coax Anderson out from his residence, but were unable to, and obtained an arrest and search warrant for Anderson and his residence. MPD, with the assistance of the NIPAS Emergency Services Team, said they made entry into Anderson's residence and took him into custody. MPD, with the assistance of the NIPAS Emergency Services Team, said they made entry into Anderson's residence and took him into custody. The view from WGN's SkyCam 9 on Thursday showed authorities and at least two armored vehicles at the home. SWAT officers also used drones and a robot while trying to make contact with the man inside. Throughout the day, investigators with the Northern Illinois Police Alarm System – NIPAS – were on the scene with command vehicles. LATEST CASES: Missing people in Chicagoland Anderson has a prior criminal record and MPD said he is a convicted felon, which led them to request assistance from NIPAS. No injuries were reported as a part of this incident. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Business Mayor
21-05-2025
- Business
- Business Mayor
US lawmakers warn over delays to major gold mine in Northern Ireland
US lawmakers are pressing Northern Ireland to approve an American-owned gold mine potentially worth billions of pounds to the local economy, warning that delays to the project risk driving away foreign capital. Four congressmen and the British ambassador in Washington Lord Peter Mandelson have written to local authorities to express frustration at eight years of setbacks to the US-backed Curraghinalt mine, the largest known gold deposit in the UK and Ireland. The letter from the congressmen to Northern Ireland's executive office, seen by the Financial Times, urged the authorities to reach 'a reasonably timely final decision' to reassure investors that the region really is open to business. With bullion at record highs, the County Tyrone project claims to have gold resources worth £20bn at current prices. Not all will be recoverable, but its owner Dalradian predicts the mine could give a £7bn boost to the economy, create 1,000 jobs and pay £2.5bn in tax to the UK. But 400 weeks into a planning process that was supposed to take 30 weeks, it is still not clear whether the project — which Dalradian says could be Northern Ireland's largest foreign investment — will be approved. Patrick Anderson, Dalradian's Canadian chief executive, called it a 'disappointing experience' © Matthew Lloyd/Bloomberg 'It feels like we've been abandoned,' Patrick Anderson, Dalradian's Canadian chief executive said, calling it a 'disappointing experience for a country that had so actively gone out seeking investment'. Set in the Sperrin Mountains, designated an area of outstanding natural beauty with lush green fields dotted with sheep, the project has attracted more than 50,000 local objections over environmental fears. Across the Atlantic, US concern has centred on the impact to the business environment, as US demand for critical minerals intensifies. Dalradian is owned by Orion Resource Partners, a US fund. As co-chairs of the Friends of Ireland and the Critical Minerals Caucuses, Republican lawmakers Guy Reschenthaler and Mike Kelly, together with Democrats Richard Neal and Eric Swalwell, wrote to the Northern Irish executive last November, saying they were 'concerned' that 'yet again' reviews of the project had been extended. Dalradian initially presented a planning application in 2017. A public inquiry — the final stage in the process before a decision by the Infrastructure department — began in January this year. But hopes of a swift decision were scotched. The inquiry was suspended on the third day because of insufficient consultation on the cross-border impact on a nearby river. It remains on hold. 'We believe that a fair and timely adjudication of the merits of this project would send the message to investors worldwide that NI is truly a place they should feel confident doing business,' the US lawmakers said. In March, Neal and Kelly urged President Donald Trump to appoint an envoy amid concern over US investments in the region. In separate letter sent to the head of Northern Ireland's civil service that month, Mandelson outlined growing frustration in Washington over the project, people familiar with it said. Lisa O'Brien, exploration geologist examines samples at the group's offices in Omagh © Charles McQuillan/FT Dalradian's application seeks permission to mine 3.5mn oz of high-grade gold, plus significant silver, copper and critical minerals including tellurium used in solar power cells. Northern Ireland is one of the UK's poorest regions. Read More Work Advice: How do I stand up to a tyrannical VP? But Fidelma O'Kane of Save our Sperrins, one of several opposition groups, said local residents would not be bought with the prospect of mining riches. 'Our fresh air, clean water and landscape are priceless,' the retired social worker and lecturer said. 'We are determined [to fight] . . . for our children, our grandchildren and future generations'. Shuttered behind a green metal gate, the mine is ankle-deep in water in some parts. Blue marks across the grey-brown rocks trace some of the 21 veins — some labelled with their name, width and gold content. Gold samples are seen pictured at the group's offices in Omagh © Charles McQuillan/FT Orion, which has $8.2bn assets under management including from large US pension funds, has invested some $400mn since buying Dalradian in 2018 and plans to invest another $350mn to start production. The company calls Curraghinalt, which was first explored in the 1980s, an 'unusually rich deposit averaging 13.5g of gold per tonne of rock, more than five times the global average for gold mines'. That 'is certainly a high-grade deposit in terms of other gold deposits around the world,' said Gavin Mudd, director of the UK Critical Minerals Intelligence Centre at the British Geological Survey. Dalradian has conducted extensive drilling since taking over the project in 2009 and has identified 6.1mn ounces of 'phenomenal' gold resources. view of the countryside where the mine is situated © Charles McQuillan/FT The DfI confirmed it had received Mandelson's letter and would 'work at pace to reach a decision . . . as soon as possible.' Swalwell declined to comment. Kelly, Neal, Reschenthaler and the British Embassy in Washington did not respond to requests for comment. Mandelson declined to comment. Read More China is considering countermeasures to Biden's executive order Northern Ireland's Executive Office said an official decision would be made on the project as soon as possible, pending the planning inquiry. Anderson thought his parents' native Northern Ireland, where they had worked in the Harland & Wolff shipyard, would be easier to do business in than some parts of South America where he has worked. 'I was naive . . . this is the most laborious [planning process] I've ever seen.' Additional reporting by Jim Pickard
