When you are ready to shop for a new vehicle from Mike Anderson Chrysler Dodge Jeep® Ram of Logansport, please remember to keep the One Big Beautiful Bill Act in mind. A major part of this new bill is the new interest tax deductions on new vehicles sold. Read on to learn more about how this bill works.
What the One Big Beautiful Bill Act Means for Vehicle Shoppers near Anderson
A New Deduction: The One Big Beautiful Bill Act allows people to deduct the interest they pay on a loan they use to buy a qualified personal use vehicle. This is effective for 2025 to 2028, and the maximum annual deduction is $10,000. Please keep in mind that lease payments do not qualify.
How to Qualify for the Deduction: The loan must originate after December 31, 2024, and someone must have used that loan to buy a personal use vehicle with a secured lien on the vehicle.
Vehicles That Qualify: Vehicles that qualify include any car, SUV, truck, van, minivan, and motorcycle with a gross vehicle weight of less than 14,000 pounds. The final assembly of the vehicle in question must also take place in the United States.
VIN: Taxpayers must include the VIN of the vehicle in question on their tax return to qualify.
A Deduction for Seniors: Seniors aged 65 and older may receive an additional $6,000 in deductions ($12,000 if both spouses qualify).
Contact Our Team if You Have Questions
Please contact our team if you have any questions about how the One Big Beautiful Bill Act affects your new vehicle interest. We understand that the details of any bill can often be confusing, so allow our experts to guide you through these new vehicle tax deductions and how they can affect you today.