Heads up, Car Buyers!

Exciting news from the tax world! The recently passed One Big Beautiful Bill Act (OBBBA) includes a significant change that could save you money on your next car purchase: a deduction for auto loan interest!

Here's the gist: For vehicles purchased between 2025 and 2028, you may be eligible to deduct up to $10,000 per year in interest paid on a qualifying auto loan. This is an "above-the-line" deduction, meaning you can claim it even if you don't itemize!

This deduction applies to the purchase of a new car, truck, SUV, minivan, or motorcycle (with a gross vehicle weight rating under 14,000 pounds) where you are the first owner.

The vehicle's final assembly must have occurred in the United States.

This deduction is subject to income limitations and will begin to phase out for single filers with a Modified Adjusted Gross Income (MAGI) over $100,000 ($200,000 for joint filers).

Thinking about a new car? This could be a fantastic opportunity! For questions regarding whether a car and loan qualify for this deduction, contact our team. We can help navigate the details and take advantage of these new provisions.