New made-in-U.S. cars to qualify for tax perk, IRS says

Check the vehicle identification number to determine if break on interest applies.

- CAITLIN REILLY

FORD F-150 pickup trucks are among the vehicles that qualify for the deduction.

(DAVID ZALUBOWSKI Associated Press)

Taxpayers who bought a new car in 2025 may qualify for a new tax break in the upcoming filing season — so long as that vehicle was made in the U.S., the Internal Revenue Service said.

Taxpayers should check the vehicle identification number, or VIN, to figure out whether a car they purchased this year qualifies for President Trump’s new tax deduction for car loan interest, the IRS said in guidance about the tax break published Wednesday.

The tax deduction applies to new cars assembled in the U.S. purchased from 2025 through the end of 2028. The IRS advised in a proposed rule that buyers can determine if their car qualifies by checking the final assembly location included on the vehicle identification number that’s attached to cars on dealership lots. They can also run their car’s VIN through the National Highway Traffic Safety Administration’s database to determine at which manufacturing plant the vehicle was built, the proposal said.