Under the One Big Beautiful Bill Act (OBBBA) of 2025, interest paid on loans for American-made vehicles may be eligible for a federal tax deduction. Members can view 2025 interest paid on their December statements or in Online Banking.
What’s New
- You may deduct up to $10,000 per year in interest paid on a qualifying new car loan.
- You can take this deduction even if you use the standard deduction.
- This is called an above‑the‑line deduction under IRC §163(h)(4).
Please Note:
- For your convenience, the total amount of interest paid during the year can be found on your December statement or in Online Banking.
- It is each member’s responsibility to verify whether their vehicle meets the eligibility requirements outlined in OBBBA.
Vehicle Requirements
Your vehicle must be:
- New (not used)
- For personal use
- Assembled in the United States
- Under 14,000 lbs. (gross vehicle weight rating)
- One of these types:
- Car
- SUV
- Pickup truck
- Minivan
- Van
- Motorcycle
Loan Requirements
Your loan must:
- Start after December 31, 2024
- Be a first‑lien loan (the lender is the primary holder)
- Come from a non-family lender
Income Limits
You get the full benefit if your:
- AGI is under $100,000 (single)
- AGI is under $200,000 (married filing jointly)
The deduction slowly decreases above these amounts.
Helpful Links
- IRS: One, Big, Beautiful Bill Act overview
- VIN Decoder (vPIC): Check where your vehicle was assembled
Important Reminder
This information is for educational purposes only. It is not tax or legal advice. Talk to a tax professional to see if your loan qualifies. Vantage West will provide an annual statement of interest paid as required by law.
