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Contractors—if you’re thinking about buying a personal vehicle in 2025, there’s a new tax perk worth knowing.

Contractors—if you’re thinking about buying a personal vehicle in 2025, there’s a new tax perk worth knowing.

Starting in 2025, the One Big Beautiful Bill Act (OBBBA) lets you deduct up to $10,000/year of interest on a new auto loan. This applies whether you itemize or take the standard deduction.

But heads up: this deduction ends after 2028 unless Congress extends it.

✔️ What qualifies?

Your vehicle must be:

New and financed on/after Jan. 1, 2025

Assembled in the U.S.

Under 14,000 lbs.

Used personally (not a business truck or van)

⚠️ Income limits

Deduction phases out starting at:

$100k MAGI (single)

$200k MAGI (married filing jointly)

Fully gone at $150k and $250k.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.