Big Beautiful Bill Tax Deduction on Qualifying New Honda Vehicles
You may be eligible for a tax deduction for up to $10,000 in annual interest paid on qualifying new vehicles*
What is this program?
Under the new One Big Beautiful Bill Act (OBBB), eligible consumers can deduct up to $10,000 in annual interest paid on loans for new, U.S.-assembled vehicles purchased between January 1, 2025 and December 31, 2028, regardless of whether they itemize deductions or take the standard deduction. To qualify, the vehicle must have its final assembly in the United States and be for personal—not business—use.
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Who Qualifies?
To qualify for the One Big Beautiful Bill (OBBB) vehicle interest deduction, you must be an individual taxpayer who purchases a new, U.S.-assembled vehicle for personal use between January 1, 2025 and December 31, 2028.
The deduction applies only to auto loans, not leases or cash purchases, and allows you to deduct up to $10,000 in annual interest paid on that loan—even if you take the standard deduction instead of itemizing. 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 vehicle must have its final assembly in the United States, which can be verified on the Monroney window sticker under “Final Assembly Point.” Used vehicles, business-use vehicles, and imports assembled outside the U.S. do not qualify. Always confirm details with a certified tax, legal, or accounting professional to ensure you meet all eligibility criteria.
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Which types of loans are eligible?
Only new-vehicle purchase loans are eligible under the One Big Beautiful Bill (OBBB) deduction. The law specifically applies to auto loans used to finance the purchase of a new, U.S.-assembled vehicle for personal use — meaning the buyer takes ownership and makes regular interest-bearing payments to a bank, credit union, or approved automotive lender.
The deduction covers interest paid on those qualifying loans, up to $10,000 per year. Leases, refinanced loans, used-vehicle loans, home-equity lines, or business-purpose auto loans do not qualify.
To ensure eligibility, the financing must be secured directly by the new vehicle, the buyer must be the primary borrower, and the loan must be originated within the eligible purchase window (January 1, 2025 – December 31, 2028).
Our Honda Dealership carries qualifying models
Honda models built in the United States include the Accord and Accord Hybrid (assembled in Marysville, Ohio); the CR-V (East Liberty, Ohio & Greensburg, Indiana) the Civic (at least certain trims built in Greensburg, Indiana) Lincoln, Alabama-assembled lineup: Passport, Pilot, Odyssey, and Ridgeline.
Please note: you should inspect the “Final Assembly Point” on the window sticker of the exact vehicle you buy, as assembly location can vary by trim, region and model year — and you’ll want to confirm other eligibility criteria (new vehicle, loan interest, personal use) before relying on the deduction.
Explore New Vehicle SpecialsWhy Is Right Honda The #1 Honda Dealer Near You?
At Right Honda, we believe buying a car should be as smooth and value-rich as driving it, which is why we offer an expansive selection of new and pre-owned Honda vehicles, a Price-Match Guarantee on service and parts, flexible financing (including “90 Days Same as Cash”), and a certified factory-trained service team using genuine Honda parts — all backed by award-winning customer care and a commitment to your complete satisfaction.
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