One Big Beautiful Bill Act Car Loan Tax Credit FAQ
One Big Beautiful Bill Act Car Loan Tax Credit FAQs
Save On Your Next Car When You Shop Greeley Chrysler Dodge Jeep Ram
Here at Greeley Chrysler Dodge Jeep Ram, where we are just southeast of Fort Collins and northeast of Denver on W 25th Street and 35th Avenue in Greeley, we know we are the ideal dealership for all of your car needs. There is a lot to consider when you are shopping around for a car, and it's our job to have not only the inventory, but the answers, too. How else would we be able to save you the most money possible on the great vehicles we have for sale? We're always looking for new ways for our customers to save, and in this case, we want to share with you more about the One Big Beautiful Act*, which has a specific stipulation for a car loan tax credit that we hope you'll take advantage of. Remember, this is an opportunity to find your perfect car and get more money back in the end. You deserve the best of the best!
*Note: The text on this page is for informative purposes only. We are not tax professionals offering official advice. You should always consult a certified tax consultant when looking for guidance on related matters. You can get official details of the Bill right here.
Can you tell me more about what this deduction means for me?
We never want our customers to be confused, so we are going to go through what this tax credit means for you and how this is an incredibly beneficial thing to consider when purchasing your next vehicle with us. What this deduction means is that from now, 2025, until 2028, you can deduct interest paid on a loan used to buy a qualified vehicle, so long as this vehicle is for personal use and meets all of the correct criteria. It's worth noting that the maximum deduction that can occur annually is $10,000, and it is phased out if you have an adjusted gross income over $100,000. Keep all of those numbers in mind, and we'll be sure to go through the details with you again in person if you have any confusion.
What are the qualifications of the interest and vehicle?
- Qualified interest: What kind of interest qualifies here? That's where Greeley Chrysler Dodge Jeep Ram comes in handy. Our finance team is well-versed in all of the ways you can save. To qualify for this deduction, the interest must be from a personal use vehicle (not a business/commercial vehicle), the vehicle must be new, the interest must originate after December 31, 2024, and the interest must be secured by a lien on the vehicle.
- Qualified vehicle: The vehicles that qualify for this tax credit must be a vehicle that has a gross vehicle weight rating of fewer than 14,000 pounds. We also want to note that the final assembly of these vehicles has to happen in the United States. Any vehicle that doesn't fall under these qualifications will not count toward the tax credit.
How do I know if the final assembly is in the United States?
We know this question is going to come up because it's something most of us are not necessarily considering when buying our next car. We want a good deal, and that's okay! With this specific deduction, though, it's something you have to know more about, and it's something we would love to help you with. The location of the final assembly is actually listed on the vehicle information label that is attached to the vehicle on our lot. This is something we can absolutely help you with if you don't see it for yourself. Another option is checking out the plant of manufacture that is going to be reported in the VIN! In both circumstances, our team would love to be here as a source of information to make sure you're making the right decision without any confusion.
How do I make sure I get my tax credit for my car?
This is another common question we've had, and we want to eliminate any anxiety you are feeling when it comes to the ins and outs of your taxes, and the interest on your car. This deduction is eligible for any taxpayer who is itemizing or non-itemizing. What you need to do is include the VIN, or Vehicle Identification Number, on your tax return that you are claiming your deduction. You'll need to file your return with statements that prove the total amount of interest that has been incurred on this auto loan to the IRS. For another benefit, there will be transition relief provided by the IRS for anyone dealing with these new reporting requirements.
Now is the Time to Buy New at Greeley Chrysler Dodge Jeep Ram
Are you ready to save and get the car of your dreams? Whether you're interested in the Durango, Grand Cherokee, Wrangler, or Pacifica, we know that Greeley Chrysler Dodge Jeep Ram is ready for you. Nothing is more important to us than making our customers happy, and what better way than a tax credit? No matter the questions you have, our team will be prepared to answer and give you the information you need to succeed. You can even check out the contact form below to send in questions before you stop by and visit us in person. It's time to save!
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