New Vehicle Loan Interest Deduction

On July 4, 2025, the New Auto Loan Interest Deduction Under the One, Big, Beautiful Bill Act (OBBBA) was signed into law, introducing a tax benefit under Section 70203 — No Tax on Car Loan Interest.

What You Need to Know

Tax Deduction:

Effective 2025-2028, you may be able to deduct interest paid on a loan used to purchase a new vehicle for personal use that meets other eligibility criteria.

Eligibility Requirements:

To determine eligibility for the tax deduction, visit the IRS website “No tax on car loan interest (Section 70203)”.  You may reference “VIN lookup” to verify your vehicle’s location of final assembly.  For all other eligibility inquiries, we recommend you consult with your tax advisor.

Interest Paid Information:

Your total interest paid for the 2025 calendar year can be found on your annual statement dated December 2025 under “Interest Paid Year-To-Date” or under the specific loan account(s) in your online and mobile banking.