Does my Vehicle Loan Qualify for a Tax Deduction?
In accordance with the One Big Beautiful Bill, you may be eligible to deduct up to $10,000 annually in interest paid on qualifying new vehicle loans for 2025, provided the vehicle meets eligibility criteria including:
- A car, minivan, van, SUV, pick-up truck and motorcycle with a gross weight must be less than 14,000 pounds
- Final assembly must be in the United States
- Must be a new vehicle with the loan originating after December 31st, 2024 (no prior liens; used and leased vehicles do not qualify)
- Must be for personal use (not for business or commercial use)
Jovia Financial is unable to provide tax advice. Please consult a qualified tax professional for guidance and to determine if you meet the income and vehicle criteria.
You can also visit: https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions for more information.