If You Purchased a New Vehicle in 2025—or You’re Planning to Purchase One in the Next Few Years…

Recent federal tax updates may allow eligible taxpayers to deduct auto loan interest on qualifying new vehicles assembled in the United States. If you financed a new vehicle in 2025, or plan to purchase one through 2028, here are answers to common questions JetStream Federal Credit Union members are asking.

Frequently Asked Questions

What vehicles and loans are eligible?

To qualify, both the vehicle and loan must meet all of the following criteria:

• New vehicle only (used vehicles and leases do not qualify)
• Final assembly in the United States
• Personal use only (not commercial or fleet)
• GVWR under 14,000 lbs (cars, SUVs, vans, pickup trucks, motorcycles)
• Purchased between 2025–2028
• Financed with a standard, first‑lien auto loan

The deduction begins to phase out for Modified Adjusted Gross Income over $100,000 (single filers) or $200,000 (joint filers).

How can I verify my vehicle was assembled in the U.S.?

• Check the VIN:
  VINs starting with 1, 4, or 5 (and some 70–7Z) typically indicate U.S. assembly
• Review the window sticker or doorjamb label:
  This manufacturer label lists the final assembly plant and country
• Use the NHTSA VIN Decoder: https://vpic.nhtsa.dot.gov/decoder/

How much interest can be deducted?

Eligible taxpayers may deduct up to $10,000 per year in qualifying auto loan interest, subject to income limitations and phaseouts.

How do I claim the deduction for 2025?

For the 2025 tax year, the IRS granted lenders an exception, and Form 1098 will not be issued.

To claim the deduction, eligible taxpayers should:

• Keep their vehicle purchase contract
• Retain interest statements
• Maintain a record of the vehicle’s VIN

JetStream Federal Credit Union members can locate year‑to‑date interest paid on their auto loan on their December account statement, listed as YTD Finance Charges.

JetStream Federal Credit Union does not provide tax advice. A qualified tax professional can help determine eligibility and ensure accurate reporting based on your individual tax situation.

What if I have questions?

If your questions relate to your JetStream auto loan or future vehicle financing, our team is happy to help. For questions about how this deduction applies to your tax return, a tax professional is the best resource.