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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.