Have you heard about the new One Big Beautiful Bill Act (OBBBA)? One of its less-heralded provisions may have a significant impact on your tax return. The question is, will your new Honda SUV be eligible? Hall Honda Elizabeth City is sharing all the details.
OBBBA Tax Deduction Overview
The One Big Beautiful Bill Act (OBBBA) is a new (and temporary) tax benefit that is good for tax years 2025 to 2028. The act was designed to support American manufacturers. It also provides significant tax savings for vehicle owners, so it supports American consumers, too.
Tax Deduction Details
With the OBBBA tax benefit, you can deduct up to $10,000 per year in interest on your car loan. Only new vehicles are eligible, and your vehicle’s final assembly must have taken place in the United States sometime between 2025 and 2028. The other key requirements include:
- The vehicle must be purchased for personal, not business, use
- GVWR must be under 14,000 pounds
- The loan must be originated after December 31, 2024
- Your Vehicle Identification Number (VIN) must be included on the tax return
- There is an income phaseout, with the deduction fully phased out at $150,000 for single filers and $250,000 for joint returns
While we’re happy to answer your questions, we also suggest discussing your purchase with a tax professional.
Qualifying Vehicles
There are 119 vehicles that qualify for the OBBBA tax deduction, including Honda SUVs, sedans, trucks, and minivans. Honda has several manufacturing plants in the USA, including plants in Marysville, OH, Greensburg, IN, East Liberty, OH, and Lincoln, AL. Honda Accord, Honda Civic, Honda CR-V, Honda Odyssey, Honda Passport, Honda Pilot, and Honda Ridgeline vehicles whose assembly is completed in the United States are each eligible as of this writing, but be mindful that both vehicles’ and buyers’ eligibility qualifications may change at any time.
Explore Our Honda Inventory in Elizabeth City, NC
As you can see, now is a great time to upgrade to a new Honda vehicle. In addition to getting a reliable car, you may also reap a significant new tax benefit. Visit Hall Honda Elizabeth City to shop today!
