So no, your vehicle would not qualify for the car interest loan deduction introduced under the One big Beautiful Bill.
Here are some key factors in determining the car loan interest deduction:
In order to claim the deduction, the following criteria must be met:
- The loan originated after December 31, 2024
- The vehicle must be a new vehicle for which the taxpayer is the first owner
- The vehicle must be for personal use (or a mix of business and personal use, provided personal use is over 50%)
- The vehicle must have final assembly in the US. Vehicles manufactured in the US will have Vehicle Identification Number (VIN), with a first digit of 1,4, or 5
- Eligible vehicles include cars, minivans, SUVs, pickup trucks or motorcycles with a gross vehicle weight rating (GVWR) of less than 14,000 pounds
The amount of the deduction is capped at $10,000 (or $5,000 for Married Filing Separately) and begins to phase out at incomes above $100,000 (or $200,000 for Married Filing Jointly) and completely phases out for incomes above $150,000 (or $250,000 for Married Filing Jointly)
[Edited 1/15/26, 8:27 AM PST]
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
