Vehicle Interest Deduction 2025–2028: How It Benefits You

A New Federal Tax Benefit for Buyers of U.S.-Assembled Vehicles

If you’re considering a new Jeep, Ram, Chrysler, or Dodge, the Vehicle Interest Deduction 2025–2028 could save you thousands on your federal taxes. This recently introduced tax benefit allows qualifying buyers to deduct up to $10,000 in interest paid on eligible auto loans. Not every vehicle qualifies, so it’s important to know the rules before you buy.

At Dempsey Dodge Chrysler Jeep of Plano, we’ll help you understand how this incentive works, confirm which vehicles meet the requirements, and guide you toward a smart, tax-savvy purchase.

What is the Vehicle Interest Deduction?

The Vehicle Interest Deduction is a federal tax incentive for buyers of new 2025–2028 model-year vehicles assembled in the United States.

  • Deduct up to $10,000 in auto loan interest on eligible vehicles.

  • Applies only to new purchases (not leases or cash transactions).

  • Designed to support U.S. manufacturing and lower the cost of ownership.

Who Qualifies for This Deduction?

You may be eligible if you:

  • Buy a new 2025 model or newer

  • Finance your purchase with an auto loan

  • Use the vehicle for personal use only (not for business)

  • Purchase a vehicle with final assembly in the U.S.

  • Have a Modified Adjusted Gross Income (MAGI) under:

    • $100,000 (single filers)

    • $200,000 (joint filers)

    • Deduction phases out by 20% above these income limits

Eligible Vehicles at Dempsey Dodge Chrysler Jeep of Plano

Many U.S.-assembled 2025 and newer Stellantis vehicles qualify. Our current eligible models include:

  • Jeep Wrangler & Jeep Gladiator – Toledo, Ohio

  • Jeep Wagoneer & Grand Wagoneer – Warren, Michigan

  • Ram 1500 & Ram 1500 REV (Electric) – Warren, Michigan

  • Wagoneer S & Ram Charger – Sterling Heights, Michigan

Not sure if a specific model qualifies? Our Plano dealership team will verify eligibility for you so you can buy with confidence.

How to Claim the Vehicle Interest Deduction

When you finance your qualifying new vehicle:

  1. Record the Vehicle Identification Number (VIN) for your tax return.

  2. Track your loan interest payments throughout the year.

  3. Work with your tax advisor to claim up to $10,000 in deductible interest on your federal return for 2025–2028.

Why Buy from Dempsey Dodge Chrysler Jeep of Plano?

We’re proud to serve Plano, TX and the surrounding areas with a wide selection of Jeep, Ram, Dodge, and Chrysler models. With our competitive financing and expertise in federal tax incentives, we make it easier to:

  • Choose the right vehicle for your needs

  • Confirm Vehicle Interest Deduction eligibility

  • Secure the best possible financing terms

  • Maximise your auto loan interest tax deduction

Start Saving with the Vehicle Interest Deduction

If you’re ready to explore U.S.-assembled Jeeps, Rams, and other qualifying models, visit Dempsey Dodge Chrysler Jeep of Plano today. Our knowledgeable sales and finance teams will guide you through your purchase, confirm your eligibility, and help you take advantage of this valuable federal tax benefit for car buyers.

Drive American. Save More. Buy Local in Plano.

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