One Big Beautiful Bill Act | Car Loans Dover, OH
At the Parkway Chrysler Dodge Jeep Ram we like our customer base to be informed of current events.
The "One Big Beautiful Bill Act" has opportunities available for our customers. Click below to learn more.
Auto Loan Tax Deductions Explained
The "One Big Beautiful Bill Act" provides tax deduction for interest paid on auto loans used to purchase vehicles assembled in the US.
- This deduction is up to 10,000.00 in annual interest on loans effective for 2025 through 2028.
- Applies to NEW Electric Vehicles, Hybrid Vehicles, and I.C.E. (internal combustible engines or gas engines).
- Vehicles with loans originating between January 1st, 2025 and December 31st, 2028.
- It is specifically for loans used to buy vehicles for personal use, and not for leases.
Example: If someone finances a car assembled in the US and pays $8,000 in interest in a given year, they can deduct that $8,000 from their taxable income.
How Will the One Big Beautiful Bill Impact Auto Loan Tax Deductions?
Here's a more detailed breakdown:
- Deductible Interest: The bill allows you the taxpayer to deduct the interest paid on auto loans used to purchase qualifying vehicles.
- Qualifying Vehicles: The vehicle must be purchased (not leased) and have its final assembly in the United States.
- Timeframe: The deduction applies to loans taken out between January 1st, 2025 and December 31st, 2028.
- Deduction Limit: The maximum deduction is up to $10,000 per year.
- Eligibility: The deduction is available for both itemizers and non-itemizers, but it phases out for those with higher incomes. Specifically, the deduction is limited to individuals with modified adjusted gross incomes of $100,000 or less ($200,000 or less for married couples filing jointly).
- Impact: This deduction is intended to incentivize the purchase of American-made vehicles.
Questions? Contact Our Team Today
Contact us at Parkway Chrysler Dodge Jeep Ram by phone at 330-556-4207 if you have any questions regarding the information above and how we can help.
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Parkway Chrysler Dodge Jeep Ram
311 Commercial Pkwy
Dover, OH 44622-3123
- Sales: (330) 343-6681
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