Earlier this year, new legislation was signed into law which created several temporary tax cuts. U.S. tax payers with modified adjusted gross income over $100,000 and $200,000 for joint filers, may be able to deduct up to $10,000 per year in interest paid on qualifying personal use vehicles through 2028.

What are the vehicle requirements to receive this deduction?

  • Vehicles must be new
  • Vehicles must be for personal use only
  • Vehicles must have final assembly in the U.S.
  • Vehicles must weigh under 14,000lbs
  • The loan for the vehicle must be new and originated after December 31, 2024
To learn more about this legislation, and to see if your vehicle qualifies, please visit the official website of Internal Revenue Service (IRS) at irs.gov. 

How can I tell if my vehicle had final assembly in the United States?

To find out if your vehicle had final assembly in the U.S., use the Vehicle Identification Number (VIN) Decoder on the National Highway Traffic Safety Administration’s website at vpic.nhtsa.dot.gov/decoder. All VINs are coded with the location of the final assembly of the vehicle. Enter your 17-digit VIN and model year, then click Decode VIN. Your search will show information regarding the vehicle’s plant and country of manufacture.

If you have additional questions about the production of your vehicle, the NHTSA recommends that you contact the manufacturer directly.

If you are unsure whether you qualify for this deduction or if you have any tax-specific questions, please speak with a tax advisor as the credit union does not offer or provide tax advice.