Personal Tax Incentive
NEW VEHICLE BUYERS: UP TO $10,000 IN AUTO LOAN INTEREST DEDUCTIONS
A Potential Tax Benefit for Qualified Vehicle Buyers
Under the new federal tax law, eligible customers may be able to deduct up to $10,000 per year in qualifying auto loan interest on a new vehicle purchased for personal use. This tax deduction is available for tax years 2025 through 2028, subject to IRS requirements and income limitations.Who May Qualify?
To potentially qualify for this deduction, customers generally must meet the following requirements:- Purchase a qualifying new vehicle: Eligible vehicles may include cars, SUVs, minivans, vans, pickup trucks, and motorcycles.
- U.S. final assembly: The vehicle must have undergone final assembly in the United States.
- Qualifying auto financing: The loan must originate after December 31, 2024, be used to purchase the vehicle, and be secured by a first lien on the vehicle.
- Personal use: The vehicle must be purchased for personal use and meet applicable IRS requirements.
- Income limitations: The deduction begins to phase out when modified adjusted gross income exceeds $100,000 for most individual filers or $200,000 for married couples filing jointly.
- Tax documentation: The vehicle identification number (VIN) must be included on the tax return when claiming the deduction.
Important Details to Understand
- The deduction applies to qualifying interest paid, not the total amount financed or the vehicle's purchase price.
- The maximum deduction is $10,000 per year, subject to applicable limitations.
- The deduction may be available whether you take the standard deduction or itemize deductions.
- Used vehicle purchases and lease payments do not qualify under this provision.
- Eligibility and the actual tax benefit depend on your individual financial circumstances and applicable IRS rules.
Let Us Help You Explore Your Vehicle Options!
At Town & Country Jeep Chrysler Dodge Ram, we want our customers to have information that helps them make informed vehicle-buying decisions. Ask our team about qualifying new vehicle options, financing, and vehicle assembly information as you explore your next purchase.Visit Town & Country Jeep Chrysler Dodge Ram in Levittown, NY, to explore your options!