Hello, Island Shoppers!

Great news! Eligible buyers may be able to take advantage of a tax deduction for interest paid on financing a new vehicle assembled in the United States.

Here’s what you need to know:

• The vehicle must be purchased for personal use.
• Leased vehicles and vehicles used for business or commercial purposes are not eligible.
• The deduction is available for tax years 2025 through 2028 and applies to interest paid on new vehicles financed after December 31, 2024.
• The deduction begins to phase out for taxpayers with modified adjusted gross income (MAGI) over $100,000, or $200,000 for married couples filing jointly.
• Your actual tax savings will depend on your individual tax situation.

We encourage you to speak with your own tax or legal professional to determine whether you qualify and how the deduction may apply to your specific circumstances.

Please note: This information is provided for general informational purposes and does not constitute tax or legal advice.

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