Tax Benefit for Buyers of Cars & Trucks Assembled in The United States

The Vehicle Interest Deduction is a new federal tax benefit that allows buyers to deduct up to $10,000 of interest paid on auto loans for qualifying new vehicles assembled in the United States. This deduction applies to new 2025-2028 model cars and trucks.

This new tax incentive encourages buyers to support American manufacturers while helping reduce the overall cost of owning a new vehicle.

How to Qualify for the Vehicle Loan Interest Deduction?

Purchase and finance a new 2025 model year or newer car or truck that is assembled in the United States. (Cash purchases or leases do not qualify.) The vehicle must be for personal use. You must have a Modified Adjusted Gross income (MAGI) below $100,000 as a single filer or $200,000 as joint filers. (The deduction phases out by 20% over these limits.)

Work with a tax professional to claim up to $10,000 of deductible interest on your federal taxes.

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