TULSA, Okla. — A new tax deduction could help make your next vehicle purchase more affordable by allowing you to deduct interest paid on auto loans for certain American-made vehicles.
"This is something brand new," said Kemberley Washington, tax expert with Bankrate.
WATCH: New tax deduction could save you thousands on your next vehicle purchase
"Anyone who purchases a vehicle from January 1st of 2025 to December 31st of 2028 and finances it is eligible to deduct up to $10,000 worth of interest on the vehicle. It's a huge deal," said Kelly Summers, General Manager of Bill Knight Ford.
However, not all vehicles or buyers will qualify for this tax break.
"What we tell all of our customers is please consult your tax professional, to make sure you've got eligibility," Summers said.
Popular models like the Ford F-150 are included in eligible vehicles.
Among the qualifying vehicles are:
- cars
- pickup trucks
- SUVs
- minivans
- vans
- motorcycles
The vehicle must have a gross weight rating of less than 14,000 pounds and underwent final assembly in the United States.
The vehicle must also be for personal use, not business purposes.
"If you're in the market to purchase an EV, this will be the time to do so and maybe you can couple it up with a new tax deduction," Washington said.
The tax credits of up to $7,500 for new electric vehicles will end September 30.
The National Highway Safety Administration offers a free VIN lookup tool to help determine where a vehicle was assembled.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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