It's a new way to potentially save on your taxes when you finance a new vehicle. You may be able to deduct up to $10,000 in annual interest paid for new vehicles assembled right here in the U.S. This applies whether you itemize deductions or take the standard deduction.
Ford For America
New Tax Breaks on New Ford Vehicles
FAQs
Things You Should Know
What's this new car tax deduction?
Are there income limits?
Yes, the deduction starts to phase out for individuals earning over $100,000 (or $200,000 for married couples filing jointly).
What kind of auto debt qualifies?
This deduction is for financing personal vehicles only. It doesn't apply to business or fleet purchases, and leases are not included.
Is there a purchase-by date?
It applies to interest paid on new vehicles financed after December 31, 2024, for tax years 2025 through 2028. Contracts refinanced before 2025 don't qualify.
Which Ford vehicles are eligible?
Your dealer can confirm specific models, but many Ford vehicles assembled in the U.S. qualify.
Can my Ford dealer help me with the deduction?
Your Ford dealer can help with financing options. For personalized tax advice, we highly recommend speaking with a qualified tax or legal professional.
What about EV tax credits?
That's a separate tax incentive. Certain new Ford F-150® Lightning® trucks may qualify for a potential federal tax credit * of up to $7,500. These credits have strict rules about vehicle assembly, MSRP, and buyer income, and are set to expire on September 30, 2025.
