– Provides a tax deduction for up to $10,000 in annual interest paid on loans to acquire U.S. ASSEMBLED2 qualifying vehicles for eligible consumers.
– Applies whether an individual itemizes deductions or takes the standard deduction.
– Consult your tax, legal, or accounting professional if you have questions. This information does not constitute tax, accounting, or legal advice.
– Income limits: $100 K single ($200 K married filing a joint return)
– Phase out for next $50 K and is fully-phased out for taxpayers with modified adjusted gross income in excess of $150 K ($250 K married filing a joint return).
– Individuals financing only
– Not applicable to commercial/fleet purchases & no lease benefit.
– Only applies to interest paid in tax years 2025-2028.
– Must be new debt contracted after 12/31/2024.
– Must be assembled in the U.S.; currently, loans for new cars qualify.
2 Assembled with U.S and globally sourced parts.
