Lowering the costs of American-made cars

Who is eligible? 

The deduction is designed for working families and begins to phase out for those making over $100,000 ($200,000 for joint filers).

Which vehicles qualify? 

Eligible vehicles include new cars, minivans, vans, SUVs, pickup trucks, and motorcycles. To support domestic industry, the vehicle must have undergone final assembly in the United States. 

How do I know if my car was assembled in the U.S.? 

The easiest way to check is the "Final Assembly Point" listed on the vehicle label (window sticker) at the dealership. You can also look at your Vehicle Identification Number (VIN): if it starts with 1, 4, 5, or 7, it was built in the U.S. You can verify this officially using the NHTSA VIN Decoder online. 

Are used cars or leases included?  

No. The deduction is specifically for the purchase of new vehicles to incentivize American production. 

Are business cars included?

No. This deduction is specifically for personal-use vehicles to support working-class families. 

What counts as qualified interest?  

Qualified interest is interest paid on a loan used to purchase a qualified vehicle originally used by the taxpayer. The loan must be secured by a lien on the vehicle and must have originated after December 31, 2024. 

Do I have to itemize in order to claim it?  

No, this relief is available to both itemizing and non-itemizing taxpayers. It’s an “above-the-line” deduction that helps all eligible working families, regardless of how they file. 

When does this take effect?  

The deduction is effective for tax years 2025 through 2028. It applies to qualifying loans originated after December 31, 2024. 

How do I claim it?  

To claim the relief, taxpayers simply include the vehicle's VIN on their tax return (Schedule 1-A).