Tax Deduction

for New Vehicle Interest

As a result of the 119-21 bill signed into law on July 4, 2025, some cars purchased after December 31, 2024, may qualify for a new tax deduction. However, understanding which vehicles qualify is crucial.

Exclusions

The bill specifically excludes any vehicle that was not finally assembled in the United States. This means that even if the brand is American, the vehicle must complete its final assembly step domestically to be eligible.

Qualifying criteria include:

New vehicles only: Used cars do not qualify for the deduction.
Personal use: The vehicle must be purchased for non-commercial, personal use.
Vehicle types: Eligible vehicles include cars, minivans, SUVs, pickup trucks, and motorcycles weighing less than 14,000 pounds GVWR.
Final assembly in the U.S.: This is verified via the vehicle’s information label or VIN, which can be checked through authoritative sources like the National Highway Traffic Safety Administration (NHTSA) VIN decoder.

Looking for your total interest paid for your vehicle?

Capital Credit Union members can find this information in Digital Banking. From a desktop, once you are logged in - look under Accounts tab for the Statements & Tax Forms section.

Select View Statements:

The process of finding your interest paid is very similar if you are using a mobile device. Find the three dots on the bottom right of your screen, select Accounts, and then Statements & Tax Forms.

Consult Your Tax Professional

We can help you get to the total interest paid for the year, but reviewing the rest of the qualifications are up to you and your tax professional*. If you have any additional questions about locating your vehicle interest paid, please contact us at: 920.494.2828.

This information is for general informational purposes only and does not constitute tax, legal, or financial advice. Please consult a qualified tax professional for guidance related to your specific situation.