Overview
- The deduction applies to interest on loans originated after Dec. 31, 2024 and can be claimed for tax years 2025 through 2028.
- Taxpayers may deduct up to $10,000 of interest even if they take the standard deduction.
- Qualifying vehicles must be brand new, assembled in the United States, weigh under 14,000 pounds, and may include cars, SUVs, pickups, vans, minivans and motorcycles.
- Loans must be secured by the vehicle; refinances remain eligible if the original loan qualified, and filers must include the vehicle identification number on their return.
- Lenders will provide 2025 interest totals via websites or apps, then issue a 1098-like form starting in 2026, and buyers can use the vehicle label or the NHTSA VIN database to confirm final assembly location.