YOU MAY BE ELIGIBLE FOR A TAX DEDUCTION OF UP TO $10,000 IN ANNUAL INTEREST PAID ON CERTAIN VEHICLES*
What the One Big Beautiful Bill means for car buyers
Changes have been introduced to allow interest payments on qualifying vehicles to be 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.
Consult your tax, legal, or accounting professional if you have questions. This information does not constitute tax, accounting, or legal advice.
FAQs
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.
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.
Ended: EV Tax Credits:
- New EVs: The $7,500 federal tax credit (30D) for new electric vehicles ended September 30, 2025.
- Used EVs: The $4,000 credit (25E) for eligible used EVs ended September 30, 2025.
- You can deduct up to $10,000 per year in interest on auto loans for new vehicles used for personal purposes.
- This applies to electric or gas-powered vehicles (EV or ICE) purchased between January 1, 2025 and December 31, 2028.
- The vehicle must be built in the U.S. (Check the first digit of the VIN — 1, 4, or 5 means U.S. assembly).
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.
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. Excludes refinancing of debt incurred prior to 12/31/2024.
Must be new debt contracted after 12/31/2024. Excludes refinancing of debt incurred prior to 12/31/2024.
No. Eligible customers must claim the deduction to reduce their taxable income when they file their tax return.
Keep detailed records. If over $600 is paid in interest, lenders will provide a statement by January 31 of the following year.
Yes. It applies whether itemizing or taking the standard deduction.
No. Eligible purchases are limited to personal-use vehicles.
Must be assembled in the U.S.* Nissan models may include the Altima, Frontier, Leaf, and Pathfinder. Contact us for details.*
For more information, you may visit the IRS website.
*Eligible vehicles include those assembled with U.S and globally sourced parts.
*Our dealership and its employees do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.