Assembled in America Tax Deduction

American-Assembled Vehicle Loan Interest Deduction at Sager Ford

The new America-assembled vehicle tax deduction lets eligible buyers deduct up to $10,000 per year in auto loan interest on a new vehicle assembled in the United States. It applies to tax years 2025 through 2028 and can be claimed whether the shopper takes the standard deduction or itemizes. Sager Ford, car buyers around Santa Rosa, CA, who finance a qualifying new Ford vehicle, may enjoy a federal tax benefit if their purchased car or truck meets the assembly rules and the buyer meets income limits.

What Vehicles May Qualify?

To qualify for this interest tax deduction, your vehicle must be brand new, financed after December 31, 2024, used for personal purposes, and assembled in the United States. Many popular Ford models are built here and might qualify for personal use when financed, including:

  • Ford Bronco
  • Ford Explorer
  • Ford Expedition
  • Ford Mustang
  • Ford Ranger
  • Ford F-150
  • Ford Transit
  • Ford E-Transit
  • Ford Super Duty pickups

If you want a versatile SUV, the Ford Bronco is a great choice. Families near Calistoga, CA, will find the Ford Expedition an excellent choice for its three-row seating and cavernous cargo capacity. If you're considering a truck, the iconic Ford F-150 offers great capability and durability. The Ford Mustang won't disappoint drivers near Winters, CA, who long for thrilling drives.

How the Deduction Works

The America-assembled vehicle deduction may allow qualified buyers to deduct up to $10,000 in auto loan interest each year. It applies only to the interest paid on qualified loans, not to the total amount financed. The vehicle must be brand-new, assembled in the United States, and purchased for personal use rather than business use.

This deduction is available even for non-itemized returns, allowing more shoppers in Sonoma, CA, to claim it on their federal tax return. The actual tax benefit depends on how much interest you paid during the year, your income, and whether the vehicle and loan meet the rules.

The deduction begins to phase out for incomes over $100,000 (single filers) or $200,000 (married filing jointly), reducing or eliminating the benefit for higher earners.

Financing Your American-Assembled Toyota

The financing experts at Sager Ford will guide you through the purchase process, explain your options, and help you secure favorable financing rates. If you're shopping for an American-assembled Ford vehicle, you can explore loans that fit your budget and goals. Financing a qualifying model might let you benefit from the interest deduction while enjoying your new Ford.

Drivers from Napa, CA, can browse our new inventory online or in person at our Ford dealership. We can provide general details about qualifying models assembled in the United States, but final eligibility for the interest tax deduction is determined by federal guidelines.

Important Reminders

The interest deduction is not a rebate at the time of sale at Sager Ford-it is a federal income tax deduction claimed when filing taxes. Realized savings depend on how much loan interest you paid during the year, your income, and whether your new Ford is one of the qualifying American-Assembled models.

The tax deduction applies only to brand-new vehicle purchases for tax years 2025 to 2028, excluding used vehicle purchases and those purchased for commercial use. Your income level and phase-out limits might affect how much you can deduct.

California buyers should save all their financing paperwork and payment records in case they need them at tax time. Since tax rules and personal situations can vary, it is wise to review current IRS guidance and consult a qualified tax professional before claiming the deduction.

Shop Qualifying Ford Models Today at Sager Ford

Visit the Sager Ford showroom in Santa Rosa, CA, and take the next step toward your American-assembled Ford. Start by browsing our new inventory today, ask about financing options, and discover how the interest deduction could benefit you.

Act now-review IRS guidance and connect with a qualified tax advisor to ensure you maximize your savings and make the most of the new tax deduction.

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  1. Sager Ford

    21 S Main St
    Saint Helena, CA 94574-2155

    • Sales: 707-963-2771
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