Deduct Up to $10,000 in Auto-Loan Interest—Only on U.S.-Built Fords
The Big Beautiful Bill encourages customers to buy vehicles made in the USA. Get financing for eligible Ford models and save on your federal tax bill by hundreds each year.
Made-in-America Auto-Loan Interest Deduction at a Glance
Under the BBB's new Made-In-America Auto-Loan Interest Deduction, financing a brand-new vehicle whose final assembly occurred in the United States (look for a VIN starting with 1, 4 or 5 and confirm on the window sticker) lets you deduct up to $10,000 of the interest you pay each year on that loan for purchases made between 2025 and 2028.
The break is "above the line," so even standard-deduction filers can use it, but it phases out once your AGI tops $100k as a single filer or $200k as a married filer. To claim, all you need to do is keep the purchase contract and lender interest statements, and claim the amount on the upcoming IRS form for "qualified passenger-vehicle loan interest" when you file.
On a typical $40k loan at roughly 8% APR, that's roughly $600 in federal tax savings if you're in the 20% bracket—every year you remain under the cap. In short: choose a U.S.-built model, finance wisely, and keep hundreds in your pocket instead of sending it to the IRS.
- What you get: Deduct up to $10,000 in auto-loan interest per year (2025-2028 purchases).
- Who qualifies: Buyers of new, personal-use vehicles whose final assembly is in the United States.
- Income limits: Benefit begins phasing out above $100k (single) / $200k (joint).
- No itemizing required: It's an above-the-line adjustment—standard-deduction filers welcome.
How Much Could You Save?
| Loan Amount | APR* | Year-1 Interest | Tax Deduction | Estimated Tax Savings† |
|---|---|---|---|---|
| $40,000 | 8.0% | $3,000 | $3,000 | $600 (20% tax rate) |
| $50,000 | 7.5% | $3,750 | $3,750 | $750 |
*APR based on average new-car rate (July 2025). †Savings vary by tax bracket; consult a tax pro.
Which Ford Vehicles Qualify For The Big Beauiful Bill's Car Loan Interest Deduction?
The Ford F-150, F-150 Lightning, Mustang, Explorer, Ranger, Bronco, Super Duty, Escape, Expedition, & Transit all qualify for the BBB's car loan interest deduction.
| Model | Assembly Plant |
|---|---|
| Ford F-150 | Dearborn Truck Plant, Michigan; Kansas City Assembly Plant, Missouri |
| Ford F-150 Lightning | Ford Rouge Electric Vehicle Center, Michigan |
| Ford Mustang | Flat Rock Assembly Plant, Michigan. |
| Ford Explorer | Chicago Assembly Plant, Illinois. |
| Ford Ranger | Michigan Assembly Plant, Michigan. |
| Ford Bronco | Michigan Assembly Plant, Michigan. |
| Ford Super Duty | Kentucky Truck Plant, Kentucky; Ohio Assembly Plant, Ohio |
| Ford Escape | Louisville Assembly Plant, Kentucky |
| Ford Expedition | Kentucky Truck Plant, Kentucky |
| Ford Transit | Kansas City Assembly Plant, Missouri |
5 Questions To Ask Us While You Shop
- Can you confirm the vehicle's final assembly location on the window sticker?
- Will my lender issue a year-end interest statement?
- Is the vehicle new and untitled? (Demos and used cars don't qualify.)
- Do I meet the income limits for the full deduction?
- Can you provide a VIN eligibility printout for my records?
Frequently Asked Questions
Keep your loan interest records and the purchase contract. When you file your 2025–28 tax return, enter the deductible amount on the designated IRS line (guidance pending). You do not need to itemize.
Yes. If your new Ford is also an eligible EV, you can stack the $7,500 clean-vehicle credit (available through Sept 30 2025) with this interest deduction.
The deduction applies to interest paid on qualifying loans originated 2025-28. If you refinance, only interest on the original qualifying loan counts—TBD pending IRS clarification.