Particle.news
Download on the App Store
6 ARTICLES
·
14h ago

Treasury Launches $10,000 Auto-Loan Interest Deduction for U.S.-Built Vehicles

Treasury begins issuing IRS guidance to help taxpayers claim the benefit.

The new tax deduction on car loans will not apply to used car loans, leases, or cars or trucks that had final assembly outside of the United States. Higher income households will not qualify as well.
Image
Image
Image

Overview

  • Eligible taxpayers can deduct up to $10,000 per year in interest on loans for qualifying new vehicles purchased in 2025–2028.
  • The deduction applies whether filers itemize or take the standard deduction, according to Treasury Secretary Scott Bessent.
  • Only new, U.S.-assembled cars, SUVs, vans, pickup trucks, and motorcycles under 14,000 pounds qualify, for personal use by the first owner with a loan secured by a lien.
  • The benefit phases out for higher earners, shrinking above $100,000 for individuals and $200,000 for joint filers.
  • IRS and Treasury are rolling out operational rules, and an official list of qualifying models and some lender reporting details have not yet been published.