$10,000 Auto Loan Interest Tax Deduction for U.S. Assembled Vehicles
YOU MAY BE ELIGIBLE FOR A TAX DEDUCTION OF UP TO $10,000 IN ANNUAL INTEREST PAID ON U.S. ASSEMBLED* QUALIFYING VEHICLES.
FAQS
Provides a tax deduction for up to $10,000 in annual interest paid on loans to acquire U.S. assembled* qualifying vehicles for eligible consumers.
Applies whether an individual itemizes deductions or takes the standard deduction.
Consult your tax, legal or accounting professional if you have questions. This information does not constitute tax, accounting or legal advice.
Income limits: Benefit begins to phase out for customers with modified adjusted gross income in excess of $100k (single) or $200k (married filing a joint return).
Individual financing only – not applicable to commercial/fleet purchases and no lease benefit.
Only applies to interest paid in tax years 2025–2028.
Must be new debt contracted after 12/31/2024.
Must be assembled in the U.S.*
Contact your preferred Northtown dealership for personalized support and guidance regarding the One Big Beautiful Bill.
Under current law, the federal clean vehicle tax credit* — worth up to $7,500 for new EVs — is set to expire on September 30, 2025. To qualify, eligible vehicles must be delivered on or before that date. The credit is subject to strict requirements, including, but not limited to, where the vehicle is assembled, its price and the buyer’s income. Some participating dealers can apply the credit up front at the time of sale, lowering the purchase price immediately.
Buyers should confirm eligibility with the dealer and ensure a “time-of-sale” report is submitted to the IRS. Your ability to claim the credit depends on your personal tax situation, including your adjusted gross income. We recommend consulting a tax advisor for guidance. For the latest information on eligible vehicles and requirements, visit fueleconomy.gov.
Big things are on the horizon that are designed to make eligible vehicles’ interest payments tax deductible.
The One Big Beautiful Bill is a new federal law aimed, in part, at incentivizing the purchase of eligible vehicles assembled in the U.S.* by qualified purchasers.
New incentives could provide tax savings on interest payments made on eligible auto loans for qualified buyers, making it more affordable to get into eligible cars, trucks or SUVs assembled in the U.S.
This Act is all about rewarding the purchase of a U.S.-assembled* vehicle by allowing qualified buyers to deduct the interest paid on your loan — without compromising on what matters most to you.
See your dealer for vehicle eligibility and more details.
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Important Disclaimers:
Tax Credit Eligibility
Northtown Automotive Companies and its affiliates ("Northtown") cannot guarantee your eligibility for any Federal, State, or Local tax credits, deductions, or incentives. Your tax situation is unique, and you are solely responsible for determining eligibility with your own tax advisor or professional. Northtown does not make representations regarding current, pending, or future legislation and is not responsible for decisions made by the IRS or other tax authorities.
Tariffs & Governmental Charges
Vehicle prices and related charges may be affected by tariffs, trade duties, or taxes imposed by governmental or regulatory authorities. If such charges are enacted or changed after you sign an agreement-but before you take delivery-Northtown reserves the right to adjust the final purchase price (including sales tax) to reflect these costs. Buyers are responsible for paying any such additional charges, which are outside Northtown's control.
