New Tax Deduction for U.S.-Built New Cars

0:00This is Cory with the story, here with your quick two-minute update from Anchorage News today. A new tax deduction lets people who bought a new car in 2025 deduct interest on their auto loan up to $10,000 per year. This comes from the one big beautiful bill act, which also cut taxes on tips and overtime. It only applies to brand new vehicles purchased after December 31, 2024, with final assembly in the United States. Check the vehicle identification number to confirm. Income limits apply, phasing out for single filers with modified adjusted gross income over $100,000 or $200,000. Dollars for married couples filing jointly. The car must be for personal use, not business, and used car buyers or those with loans from before 2025 do not qualify. Tax experts notice deduction works even if you take the standard deduction, unlike many others. It reduces taxable income, not taxes dollar for dollar, like a credit, so savings depend

1:03on your bracket. For example, a $1,000 deduction might save $220 in the 22% bracket. No special form comes from lenders, use your loan statements. The policy shifts from past electric vehicle credits under the previous administration, now replaced by tariffs on imports to encourage USS. Automotive analysts say this deduction offers a modest perk for qualifying buyers, but won't drive big changes in manufacturing or buying habits. Overall, it provides a small financial lift for middle income folks with US built new cars without harming anyone else. If you think you qualify, review your paperwork for this filing season. This episode is proudly sponsored by our partner. Some for you can hear, sound you can relax into, S-O-L-I-SOLI-PILLOW.com.