Ford & The New Tax-Deductible Auto Loan Interest Bill

With the new “Big Beautiful Bill” that recently passed, many Louisville drivers probably have a lot of questions. The bill is meant to help car buyers use the interest they would pay on a vehicle loan as a tax deduction. This doesn’t apply to every vehicle, and there are limitations to this new bill. We’re here to explain what this new bill means for drivers just like you. 

See how you can use the interest on a vehicle loan as a tax deduction, and rely on the experts at Paul Miller Ford for all of your car-buying needs!

How Does It Work?

Georgetown drivers will be able to deduct up to $10,000 per year on the interest they pay for their car loan. Here are some requirements that drivers must meet to be able to use the interest on a vehicle loan as a tax deduction:

• For single filers, the deduction phases out after a gross income of $100,000. 
• For joint filers, the deduction phases out after a gross income of $200,000.
• For every $1,000 over the limit for a single filer and joint filer income, the amount you can deduct decreases by $200. 
• The loan for your vehicle must be after December 31st, 2024. 
• This deduction doesn’t qualify for vehicle leases. It’s for vehicle loans only. 

Which Vehicles Qualify? 

Here are the vehicles that qualify for tax-deductible auto loan interest savings:

• This deduction only applies to new vehicles.
• The vehicle must have been assembled in the U.S. If you’re unsure where your vehicle was manufactured, check with your dealership. 
• Cars, trucks, SUVs, vans, and motorcycles qualify as long as their gross vehicle weight rating (GVWR) is under 14,000 pounds. 
• Commercial vehicles don’t qualify for this deduction. This is only for personal-use vehicles. 

Which Ford Vehicles Qualify?

This isn’t exclusively a Ford tax credit, since any vehicle that meets the requirements mentioned above qualifies for the deduction. Since most Ford vehicles are manufactured in the U.S., most should qualify, as long as you purchase them brand-new. Schedule a test-drive of any of our Ford vehicles here at Paul Miller Ford. 

For more information about this tax deduction and to see how much you can save, visit our dealership online or right here in . While you’re here, don’t forget to ask us about our new vehicle specials!

Learn More At Paul Miller Ford

If you still have questions about how you can use the interest on a vehicle loan as a tax deduction or anything else, reach out to the finance center at our dealership. We’re conveniently located near Richmond, and we look forward to assisting you with all of your car-buying needs!