Big Beautiful Bill: Potential $10,000 Interest Deduction on Qualifying New CDJR Purchases
Financing a new Chrysler, Dodge, Jeep, or Ram? You may be eligible for a tax deduction for up to $10,000 in annual interest paid on a qualifying auto loan (subject to income limits and program rules).
This page is informational only. For tax advice, consult a qualified tax professional or CPA.
The $10,000 Advantage
A quick breakdown of why buyers are paying attention.
Deduct up to $10,000 in interest paid annually through 2028.
No itemizing required: described as an above-the-line deduction.
New, U.S.-assembled vehicles only (often VINs starting with 1, 4, or 5).
Lower taxable income: interest paid may reduce your taxable income.
Stack savings: may combine with other credits depending on your tax situation.
Pro tip: Save your loan paperwork and year-end interest statements from your lender.
Who May Qualify?
In general, buyers may qualify when they purchase new for personal use, finance with a loan secured by the vehicle,
and pay interest during the tax year—subject to program rules and income limits.
New vehicle purchase (not used)
Personal-use (not commercial use)
Qualifying auto loan secured by the vehicle
Interest paid during the tax year
Vehicle meets requirements (often tied to U.S. final assembly)
Eligibility can vary. Confirm your situation with a tax professional.
Popular CDJR Models Shoppers Ask About
Eligibility can vary by production location/trim. Confirm the specific vehicle you’re purchasing.
Ram 1500 Ram HD 2500/3500 Jeep Wrangler Jeep Grand Cherokee Dodge Durango Chrysler Pacifica
Your term length, rate, down payment, and trade equity can all change how much interest you pay over time.
Our finance team can help you compare options side-by-side.
No. It’s a potential tax deduction related to interest paid on a qualifying auto loan.
Do I have to itemize?
This benefit is often described as “above-the-line,” which may apply even if you take the Standard Deduction.
How do I confirm my vehicle qualifies?
Bring the VIN/window sticker and confirm with your tax professional. We can help you locate the info you’ll need.
TAX DEDUCTION DISCLOSURE: The “Car Loan Interest Deduction” is provided under the One Big Beautiful Bill Act (OBBBA) for tax years 2025 through 2028.
To qualify, the vehicle must be (1) purchased NEW, (2) for personal use only, and (3) have “Final Assembly” in the United States as verified by the VIN.
This deduction is subject to Modified Adjusted Gross Income (MAGI) limits: full deduction is available for single filers with MAGI up to $100,000 and joint filers up to $200,000.
Benefits phase out completely at $150,000 (single) and $250,000 (joint). Maximum annual deduction is $10,000 in qualified interest.
Team Granger CDJR is not a tax advisory firm. Tax benefits depend on individual circumstances. Customers are strongly encouraged to consult with a qualified tax professional or CPA.
This vehicle is being built now. Contact dealer to reserve this vehicle and discuss options for locking in pricing and eligible incentives.
Vehicles identified as “Being Built” are pre-production vehicles that are not yet on the dealer’s lot or in transit. Pre-production computer-generated images may be shown and may not be representative of the vehicle listed.
MSRP for standard equipment plus optional equipment listed. Vehicle delivery date and other vehicle information, including pricing and incentives, are subject to change until the vehicle build is complete.
MSRP excludes additional charges including without limitation any delivery fees, government fees and taxes, title and registration fees, finance, filing and processing charges, emission testing charge, accessories and upfits.
