Established by the OBBBA, starting in tax year 2025-2028, taxpayers can deduct up to $10,000 annually in interest on loans for new , U.S.-assembled personal vehicles purchased. This “above-the-line” deduction is only available for brand new vehicles intended for more than 50% personal use. The Gross Vehicle Weight Rating (GVWR) must be less than 14,000 pounds. Used vehicles and leased vehicles do not qualify for this deduction. The deduction is subject to Modified Adjusted Gross Income limitation.
