One, Big, Beautiful Bill – Car Loan Tax Deduction at Jerry Durant Chevrolet

At Jerry Durant Chevrolet in Granbury, Texas, we’re always working to help our customers get the most value from their purchase. With the passage of the One, Big, Beautiful Bill, drivers can now access a federal tax benefit that may make financing new Chevrolet vehicles more affordable. 

Through the new “No Tax on Car Loan Interest” provision, eligible buyers may deduct a maximum of $10,000 per year in interest paid on qualifying auto loans, potentially reducing their overall tax burden.

Today, our Chevy dealership will explore the deduction to help Dallas, Fort Worth, Cleburne, and Stephenville shoppers stay informed when shopping for their new Chevrolet vehicle! 

Vehicle Eligibility Checklist 

To take advantage of the “No Tax on Car Loan Interest” deduction, your vehicle purchase must meet all of the following criteria:

• Final assembly in the United States
• New vehicles only (used cars do not qualify)
• Auto loan taken out after December 31, 2024
• Personal-use vehicle (not for business or commercial use)
• Gross Vehicle Weight Rating (GVWR) under 14,000 lbs 
• Financed with a standard auto loan (not a lease)

What Can You Deduct & Who Qualifies?

Below, we take a deeper look at how much you can deduct, which type of deductions apply, and who qualifies: 

• Deductible amount: Maximum of $10,000 in loan interest per year
• The incentive is available whether you take the standard deduction or itemize
• Income limits apply: The benefit phases out at higher income levels
• The phase-out starts at $100,000 MAGI for single filers and $200,000 MAGI for joint filers

Which Chevrolets Qualify for the Tax Deduction?

Chevrolet assembles a range of vehicles in the United States. Here’s a breakdown of the Chevy models that may qualify for the tax deduction. That said, we recommend verifying the vehicle’s VIN and consulting your tax professional to confirm eligibility.

Models Assembled in the US:

Checking if Your Vehicle Qualifies 

• Confirm the vehicle is new (used and certified pre-owned vehicles do not qualify).
• Find the VIN on your driver’s side doorjamb label, insurance card, or vehicle registration.
• Ensure the VIN starts with a 1, 4, 5, 7F-7Z, or 70. This means the vehicle was assembled in the United States.
• Confirm the loan type. Make sure it’s a standard secured auto loan from a qualified lender (leases do not qualify).

Bonus Tip: If you're unsure, you can double-check using the NHTSA VIN decoder to verify details.

Frequently Asked Questions 

To help you on your car-buying journey, we’ve answered the top questions about the "No Tax on Car Loan Interest" provision of the One, Big, Beautiful Bill!

What vehicles qualify for the “No Tax on Car Loan Interest” deduction?

Only new vehicles assembled in the United States are eligible. Used vehicles do not qualify, even if they are financed through an auto loan or another lender.

How can I tell if my vehicle was assembled in the United States?

Check your VIN to confirm the country of origin. If your VIN begins with a 1, 4, 5, 7F-7Z, or 70, it was assembled in the United States. You can locate the VIN at the base of the windshield on the driver’s side, as well as on your auto insurance card and vehicle registration.

Which Chevrolet models are assembled in the United States?

Chevy models assembled in the United States include: 

• Silverado 1500
• Silverado HD
• Silverado EV
• Traverse
• Colorado
• Suburban
• Tahoe
• Bolt EV
• Corvette

Can the tax deduction be used for work or commercial vehicles?

No. The vehicle must be purchased primarily for personal, non-commercial use.

When does this tax benefit take effect?

The deduction applies to auto loans originated after December 31, 2024.

Is there a cap on the amount of interest I can deduct?

Yes. The deduction is limited to $10,000 per year in qualifying auto loan interest.

Can I claim the deduction on a lease or used vehicle?

No. The current guidelines apply only to new vehicles that meet the assembly requirements.

Should I consult a tax professional?

Yes. While this benefit may provide meaningful savings, individual tax circumstances vary. We recommend consulting a tax professional to determine how this deduction applies to your situation.

Finance Your New Chevrolet at Jerry Durant Chevrolet!

The “No Tax on Car Loan Interest” provision creates exciting opportunities for Texas drivers near Dallas, Fort Worth, Cleburne, and Stephenville to get behind the wheel of their dream car. With a potential $10,000 deduction per year for eligible borrowers, now is an ideal time to purchase a new Chevrolet vehicle and enjoy added savings along the way.

The team at Jerry Durant Chevrolet is committed to making financing your next Chevy simple and stress-free. The experts in our finance center will work with you one-on-one to help you find the ideal plan for your needs. You can even start the process today by applying for credit or valuing your trade-in online.

At Jerry Durant Chevrolet, our knowledgeable finance department is committed to supporting Granbury shoppers through every stage of the buying process. Our experts can help you understand which available incentives and programs best fit your needs so you can confidently drive home in your new Chevrolet!

DISCLAIMERS: 
This content is for informational purposes only and does not constitute tax advice. Eligibility and availability are subject to federal law and IRS guidance.