What is the Big Beautiful Bill Car Tax Credit?
We have got some good tax deduction news for drivers in the Tempe and Phoenix area. Many of the vehicles that we sell at Coulter Tempe Buick GMC qualify for the new Big Beautiful Bill car tax credit. This can mean a big tax deduction for you in 2025 and going forward when you purchase a qualifying vehicle at Coulter Tempe Buick GMC. Here are the details on this exciting new tax credit.
Get to Know the Big Beautiful Bill's Tax Credit:
New Car Tax Credit Big Beautiful Bill Details
The One Big Beautiful Bill Act was signed into law on July 4, 2025. The law went into effect immediately, and the new vehicle tax credit is retroactive to December 31, 2024. Even if you purchased a qualifying vehicle from Coulter Tempe Buick GMC between January 1 and July 4, 2025, you still qualify for the tax credit for the full year in 2025. The new car tax credit will sunset after 2028, unless Congress renews it before then.
How the Tax Credit Works
The tax credit is a big incentive for buyers to purchase vehicles that are built in America. It allows buyers to deduct up to $10,000 per year in interest that they pay on a car loan for a qualifying vehicle. So, what is a "qualifying vehicle?"
What Counts as a Qualifying Vehicle?
According to the IRS, a qualifying vehicle is any car, truck, SUV, van, or other vehicle that weighs less than 14,000 pounds (gross vehicle weight). The vehicle must have undergone its final assembly in the USA.
Qualifying Vehicle Loan Requirements
There's also qualifying interest to consider. To qualify for the deduction, the interest must be on a vehicle loan that meets the following conditions.
- The loan must originate after December 31, 2024.
- The loan can only be used to purchase a new vehicle. The tax credit does not apply to used or pre-owned vehicles.
- The loan must be on a personal-use vehicle. Business- and commercial-use vehicles do not qualify.
- Finally, the interest must be secured by a lien on the vehicle.
Refinancing and Loan Transfers
Here is another bit of good news. If you refinance the vehicle later on with a different car financer, interest paid on the new loan will still be deductible.
Documentation for the Tax Credit
The lienholder will send you the car loan tax return paperwork in January, and you will be able to deduct the qualifying interest paid on the vehicle!
Income Limits and Phaseouts
One last thing to note: there is an income phaseout for taxpayers. The full $10,000 amount can be deducted for single filers making less than $100,000 ($200,000 for married filing jointly). The deduction phases out for the next $50,000 in income. It fully phases out for individuals making over $150,000 ($250,000 if married filing jointly).
Qualifying Vehicles at Coulter Tempe Buick GMC
If you meet the income guidelines and want to take advantage of this exciting tax deduction, we have vehicles in stock that qualify at Coulter Tempe Buick GMC. It could mean a nice tax break for you over the next few years when you purchase one of the following from us.
Final Assembly in the USA
These new GMC and Buick vehicles all undergo final assembly in Michigan, Texas, Missouri, or Indiana, so they are "qualifying vehicles" under the Big Beautiful Bill car tax credit. Deducting the interest paid on a new car, truck, or SUV is a great way to lower your annual tax bill. That also makes ownership of a new Buick or GMC ride even more affordable.
Visit Coulter Tempe Buick GMC Today
Stop by Coulter Tempe Buick GMC today to see our full inventory that qualifies for the new tax credit!