Auto Loan Interest Deduction - One Big Beautiful Bill Act (OBBBA)
Effective July 4, 2025 | Save On New Ford Vehicles
Save on a New Ford Vehicle with New Tax Deductions
The One Big Beautiful Bill Act was signed into law on July 4, 2025, and it includes tax breaks for interest paid on new vehicles purchased from 2025 to 2028. You could claim up to $10,000 on top of the standard deduction when you file your taxes, which means significant savings on the purchase of a new vehicle at Ellsworth Ford Inc.
Not all new vehicles qualify for the tax break because the bill requires that the deduction only applies to new vehicles made in America. Ford is proud to offer vehicles made in America as part of the Ford for America promise.
New Auto Loan Interest Tax Deduction Eligibility
To claim the tax deduction, buyers should buy their new Ford vehicle made in America between 2025 and 2028. You could be eligible for the tax break if you purchased your vehicle in 2025 before the bill was signed into law. Check your vehicle's VIN to confirm made-in-America status. There are income limits to ensure single people who make less than $100,000 per year and couples who make less than $200,000 per year are the primary benefactors of the tax break.
Auto Loan Interest Tax Deduction Details:
- Deductible amount: Up to $10,000 per year
- Eligibility period: 2025-2028
- Vehicle types: electric vehicle (EV), Hybrid, and Gas Models
- Vehicle Identification Number (VIN) requirement: Must start with 1, 4, or 5 to confirm final assembly in the U.S.
- Customer income thresholds: Phase-out begins at $100K for single filers, $200K for joint filers
Ford for America: Eligible Vehicles at Ellsworth Ford Inc.
Ford is an American company, but not all Ford vehicles meet the strict requirements of the OBBBA auto loan interest deduction. Our friendly sales team can review our new Ford vehicles for sale and confirm the vehicle's tax deduction eligibility status by looking up the VIN. However, the made in America requirement is just one eligibility criterion for the tax deduction. Be sure to consult your tax preparation specialist to learn more about your eligibility status for the auto loan interest tax deduction. The following new Ford vehicles may qualify for the tax deduction as part of the OBBBA:
- Ford F-150, made in Dearborn, MI
- Ford F-150 Lightning, made in Kansas City, MO
- Ford Mustang, made in Flat Rock, MI
- Ford Bronco, made in Wayne, MI
- Ford Ranger, made in Wayne, MI
- Ford Explorer, made in Chicago, IL
- Ford Escape, made in Louisville, KY
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Ellsworth Ford Inc.
424 Industrial Road
Ellsworth, WI 54011
- Sales: (715) 273-4319
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