Big Beautiful Bill (OBBB) Auto Loan Interest Deduction Guide
If you’re shopping for a new Ford vehicle, there are multiple potential benefits that may be available to you as a result of the recently signed One Big Beautiful Bill Act (OBBB). Our team at Preferred Ford of Grand Haven is here to help you maximize your savings through these potential tax incentives, making your next purchase even more rewarding. Below, you can learn more about the specifics of the program itself, how to qualify, what vehicles are eligible, and much more. Should you still have any questions, we’re standing by to help!
One Big Beautiful Bill (OBBB) Details
Contained within the recently signed One Big Beautiful Bill Act (OBBB) is a provision where eligible buyers may deduct annual interest paid on auto loans for new, USA-assembled vehicles that are purchased between January 1, 2025 and December 31, 2028. This deduction is available to taxpayers who itemize their deductions and to those who take the standard deduction. In addition to final assembly requirements, the vehicle must be used exclusively for personal purposes. Business use is not eligible for this deduction.
Qualification Requirements
Individual taxpayers who purchase a new, U.S.-assembled vehicle for personal use between January 1, 2025 and December 31, 2028 may be eligible for the One Big Beautiful Bill (OBBB) vehicle interest deduction. This deduction is available solely for auto loans, meaning that cash purchases and leases are not eligible.
In terms of income requirements, your adjusted gross income (AGI) must fall below the phase-out limits (approximately $100,000 for single filers and $200,000 for joint filers, with reductions above those levels). The maximum deduction amount is up to $10,000 in annual interest paid on that loan. As with all tax-related matters, always consult a certified tax, legal, or accounting professional to verify your eligibility.
Eligible Ford Vehicles
A variety of new Ford models qualify for the One Big Beautiful Bill (OBBB) vehicle interest deduction due to their domestic final assembly location. You can find Final Assembly Point information listed on the Monroney window label to confirm eligibility. Remember, used vehicles, business-use vehicles, and models assembled outside the United States are not eligible.
*Individual tax situations may vary. The information presented was accurate at time of publishing. Federal rules and tax guidelines are subject to change. Consult your tax advisor for complete details on rules applicable to your individual situation.