Buy American Tax Deduction

[dennisdarby]

I purchased a new 2025 Harley-Davidson motorcycle. They had a poster in the dealership stating that it was eligible for a "Buy American" tax deduction/credit.

[DoninGA]

Yes, a new 2025 motorcycle may be eligible for the federal "No Tax on Loan Interest" deduction if it is U.S.-assembled, purchased for personal use, and financed between Jan 1, 2025, and Dec 31, 2028.

To enter, edit or delete New Car Loan Interest -

Click on Federal Taxes (Personal using Home & Business)
Click on Deductions and Credits
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Scroll down to Cars and Other Things You Own
On Car Loan Interest, click on the start or update button

[MindyB]

The "Buy American" benefit you saw is a federal tax deduction established under the Working Families Tax Cuts (part of the "One, Big, Beautiful Bill" passed in 2025), which allows you to deduct up to $10,000 per year in interest paid on a loan for the motorcycle. 

To qualify for this deduction, which is available for tax years 2025 through 2028, your Harley-Davidson must have a Vehicle Identification Number (VIN) starting with 1HD, confirming its domestic assembly (not all models qualify, so double check this.) 

This deduction can be claimed even if you take the standard deduction rather than itemizing.

You may find this article helpful: What is the vehicle loan interest deduction?