paymentsOne Big Beautiful Bill
Tax Deductions, Credits, and Savings FAQ
lightbulb_2What is the Auto Loan Interest Deduction?
● The One Big Beautiful Bill Act (signed July 4, 2025) introduces a new above-the-line deduction that lets buyers deduct up to $10,000 per year in interest on new auto loans for U.S. – assembled vehicles, through 2028 diamondvalleyfcu.org Kiplinger.
● You do not need to itemize your return — standard deduction filers are fully eligible Kiplinger The Week diamondvalleyfcu.org.
directions_carWhich vehicles qualify?
● Must be new, for personal use, and assembled in the United States (final assembly location matters) AP News The Week Fox Business.
● Many popular imported models may not qualify — even if the brand is based abroad—because the final assembly point matters The Week.
● Examples of qualifying vehicles include Ford F‑150 Lightning, Escape Plug‑In Hybrid; Chevrolet Silverado EV, Blazer EV; Jeep Wrangler 4xe; VW ID.4 (Chattanooga), and more that meet U.S. final assembly criteria.
receipt_longWho can claim this deduction?
| Filing Status | Income Limit | Notes |
|---|---|---|
| Single Filers | Up to $100,000 AGI | Full deduction available |
| Joint Filers | Up to $200,000 AGI | Full amount; phases out above that X (formerly Twitter) The Week Kiplinger Kiplinger Kiplinger |
● For incomes above those limits, the deduction phases out $200 for every $1,000 of excess income Kiplinger The Week Fox Business.
attach_moneyHow much can consumers save?
● Deductions up to $10,000/year in interest, but only borrowers financing large loans (exceeding ~$110,000) can claim the full benefit The Week AP News.
● Given the national average vehicle price (~$49,000), typical buyers might save around $400–$500/year, roughly $1,600–$2,000 over four years The Week.
trending_downHow do the sales tax savings and interest deduction stack up?
corporate_fareHow does U.S. assembly play into savings?
● Only vehicles whose final assembly occurs in the U.S.A. qualify—over 100 models meet this standard, according to Cars.com.
● Ask our dealership to confirm whether a specific model is U.S.-assembled—most eligible models will be clearly marked or certified.
hourglassWhen does this tax deduction expire?
● Auto loan interest deduction is valid for loans financed between 2025 and 2028. After that, the opportunity is gone.
● Meanwhile, the federal EV tax credit set under the Inflation Reduction Act ends September 30, 2025, after which leasing won’t qualify any longer The Week Kiplinger AP News AP News The Week Fox, Business Facebook Kiplinger Kiplinger.
check_circleWhat should I do?
● Ask for vehicles assembled in the U.S. when shopping—these may qualify.
● Finance the vehicle, rather than paying cash, to maximize the interest deduction.
● Provide your adjusted gross income (AGI) to estimate eligibility—our finance experts can walk you through the numbers.
star_rateWhy Trade with Payne During Big Beautiful Bill?
● You’ll get top trade‑in offers, reducing taxable price and saving on sales tax.
● Many U.S.-assembled models at our dealer qualify for the auto‑loan interest deduction.
● We’ll help you confirm eligibility and walk you through your expected savings.
