Tax Tip #256

For taxable years 2025 through 2028, taxpayers can claim up to $10,000 in interest paid on loans for new, American-made passenger vehicles—no itemizing required. 

Key details include: 

• Income phaseouts begin at $100,000 (single filers) and $200,000 (married filing jointly).
• The vehicle must be new and final-assembled in the US, excluding most vehicles made by Honda, Hyundai, Nissan or Toyota.
• The vehicle must have a gross vehicle weight under 14,000 lbs.
• Eligible vehicle types include cars, minivans, SUVs, pickup trucks, vans and motorcycles. Conversely, ATVs, trailers and campers are not eligible.
• You must report the VIN on your tax return. 

If you plan to finance an eligible vehicle in 2025, be sure to provide the VIN with your 2025 tax documents in early 2026 to receive this benefit. 

Have questions about the Big Beautiful Bill? Contact a team member for more information.