In the News

New Tax Deduction for Auto Loan Interest

On July 4, 2025, the One, Big, Beautiful Bill Act (OBBBA) was signed into law, offering a new tax benefit:
No Tax on Car Loan Interest under Section 70203.

Tax Deduction:

You may be able to deduct auto loan interest for tax years 2025-2028.

Eligibility:

  • Vehicle Type: Must be a new passenger vehicle used for personal purposes. Used vehicles don’t qualify.

  • Purchase Date: The vehicle must be purchased on or after January 1, 2025.

  • Loan Info: You’ll need to provide the Vehicle Identification Number (VIN) when claiming the deduction.

Qualifying Vehicles:

  • Cars, minivans, SUVs, pickup trucks, and motorcycles.

  • Must be assembled in the U.S. (Check VIN).

  • Gross vehicle weight rating must be under 14,000 pounds.

How to Find Your Interest Paid:

Your total interest paid for the year will be listed on your December 31 Credit Union statement.

We recommend you consult with a tax advisor or visit the IRS page on car loan interest for full eligibility guidelines.