New Vehicle Loan Interest Deduction
Understanding the New Auto Loan Interest Deduction Under the One, Big, Beautiful Bill Act (OBBBA)
What you need to know:
On July 4, 2025, the OBBBA was signed into law, introducing a tax benefit under Section 70203 — No Tax on Car Loan Interest. Taxpayers may be able to deduct qualified auto loan interest per year for tax years 2025 through 2028.
Eligibility Requirements
- The interest must be paid from a loan on a new passenger vehicle used for personal purposes (used vehicles do not qualify)
- Vehicle was purchased on or after January 1, 2025
- Borrowers must include their vehicle’s VIN (Vehicle Identification Number) when claiming the deduction
Qualifying Vehicles
- Cars, minivans, vans, SUVs, pickup trucks, and motorcycles
- Must be assembled in the United States (VIN Lookup)
- Must have a gross vehicle weight rating under 14,000 pounds
Interest Paid Information
Eligible members who have been identified by Metro Credit Union should have received a letter regarding auto loan interest information by January 31st, 2026. If you have any questions or concerns, please call us at 877.MY.METRO.
Metro Credit Union advises members to consult their tax advisor or visit the IRS website “No tax on car loan interest (Section 70203)” for full eligibility guidelines.