Big Beautiful Bill New Auto Loan Interest Deductions
As a result of the recently-introduced One Big Beautiful Bill Act (OBBB), there are several potential advantages that may be available to individuals who purchase a select new Honda vehicle. Germain Honda of Surprise is standing by to help you take advantage of these potential tax incentives that can make your new vehicle purchase that much more rewarding. You’ll find complete details surrounding the program itself, qualification requirements, eligible vehicles, and much more listed below. If you still have questions, our team of finance experts are standing by to help!
One Big Beautiful Bill (OBBB) Details
Included with 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 Honda Vehicles
Several new Honda 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.
- Accord / Accord Hybrid (Marysville, OH)
- Civic Sedan (select vehicles only, Greensburg, IN)
- CR-V / CR-V Hybrid (East Liberty, OH and Greensburg, IN)
- Passport (Lincoln, AL)
- Pilot (Lincoln, AL)
- Odyssey (Lincoln, AL)
- Ridgeline (Lincoln, AL)
1 *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.