If you've been thinking about getting the keys to a new Mazda, now is the perfect time. Thanks to recent changes to federal tax regulations when buying a new Mazda built in America, qualified buyers can now deduct interest paid on loans for Mazda vehicles that are assembled in the United States.
This new federal tax incentive can significantly reduce your financing costs and is available exclusively for vehicles built in America. Ready to learn more? Fred Beans Mazda of Abington is here to support you throughout it all, from confirming vehicle eligibility to completing the final purchase agreement.
What Is the New Auto Loan Interest Tax Deduction?
The new auto loan interest tax deduction helps qualifying buyers deduct up to $10,000 per year in interest paid on new auto loans. This program runs through December 31, 2028, offering a substantial financial advantage whether you take the standard deduction or itemize on your tax return.1
We highly recommend keeping detailed records of your loan and purchase for tax time. Our Willow Grove Mazda finance experts are here to help you with all the required information and provide you with an overview of the program.
How do I know if My MAZDA was Built in America?
Confirming whether your Mazda was assembled in America is required for eligibility. Check the VIN (Vehicle Identification Number) of your vehicle -- the first digit often reveals the country of production. Vehicles with a VIN starting with "1", "4", "5" or "7" are generally built in the U.S.
You can also use the NHTSA VIN decoder or contact our local Mazda dealership for assistance in identifying your vehicle's origin to ensure you qualify for the deduction.
Which MAZDA Vehicles Qualify for the Interest Deduction?
To qualify for this federal tax deduction, your new Mazda must be assembled in the United States. Currently, the following new Mazda models meet these requirements:
- Mazda CX-50 (assembled in Huntsville, AL)
- Mazda CX-50 Hybrid (assembled in Huntsville, AL)
Auto Loan Deduction Frequently Asked Questions
01What are the income limits?
To qualify for the full deduction, individuals must have a modified adjusted gross income up to $100,000. Couples who file jointly can earn up to $200,000. The benefit decreases for people or households with higher incomes.
02Do the deductions apply to vehicles used for business or commercial purposes?
This deduction applies to personal vehicles. Different tax rules and deductibles may apply for business-use vehicles. Speak with a tax professional about your specific situation.
03Do used vehicles qualify?
Only new vehicles that are assembled in the United States for personal use qualify for this deduction. Used vehicles are not eligible.
04Do lease payments qualify?
Lease payments do not qualify, as this deduction applies to interest paid on loans. Leasing terms may have different tax implications, which should be discussed with a tax advisor.
Buy a Qualifying New MAZDA Made in America Today
Contact Fred Beans Mazda of Abington to review federal auto loan deduction eligibility and upgrade to an American-made Mazda model today.
¹ See dealer for details. Eligibility and requirements are subject to change. We recommend speaking with a tax professional.
