Thinking about upgrading to a new Mazda? Pennsylvania drivers can now benefit from recent changes to federal tax regulations when buying a new Mazda built in America. With the auto loan interest deduction, qualified buyers may deduct interest paid on eligible loans for American-built Mazda models.
This new initiative can significantly lower your financing costs and is available exclusively for vehicles assembled in the United States. Experience the excellence and commitment at Fred Beans Mazda of Mechanicsburg as we support you throughout your buying journey, from checking vehicle eligibility to completing your purchase.
What Is the New Auto Loan Interest Tax Deduction?
The federal auto loan interest tax deduction allows qualifying buyers to subtract up to $10,000 per year in interest paid on new car loans. This program is available through December 31, 2028, offering a substantial financial benefit whether you take the standard deduction or itemize on your tax return.1
Keeping detailed records of your loan and purchase is essential for tax time. Our local finance experts are ready to assist you with all the necessary documentation and provide detailed explanations of the program.
How do I know if My MAZDA was Built in America?
Determining whether your Mazda was assembled in America is essential for eligibility. Check the VIN (Vehicle Identification Number) of your vehicle -- the first digit will often reveal the country of manufacture. Vehicles with a VIN starting with "1", "4", "5" or "7" are typically built in the U.S.
You can use the NHTSA VIN decoder or contact our Mechanicsburg Mazda dealer for assistance in identifying each Mazda model's origin to ensure you qualify for the deduction.
Which MAZDA Models Qualify for the Interest Deduction?
To take advantage of this federal tax deduction, your new Mazda must be assembled in the United States. Currently, the following new Mazda vehicles 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?
Individuals with a modified adjusted gross income up to $100,000 or couples earning up to $200,000 jointly are eligible for the full deduction. The benefit reduces for higher incomes.
02Do the deductions apply to vehicles used for business or commercial purposes?
This deduction primarily applies to personal vehicles. For business-use vehicles, different tax rules and deductibles may apply. Consult with a tax professional for your specific situation.
03Do used vehicles qualify?
Only new vehicles that are built in America for personal use qualify for this deduction. Used vehicles are not eligible.
04Do lease payments qualify?
The deduction applies to interest paid on loans, not lease payments. Leasing terms may have different tax implications, which should be discussed with a tax advisor.
Buy a Qualifying New MAZDA Today
Contact Fred Beans Mazda of Mechanicsburg today to explore your eligibility and drive home an American-built Mazda with confidence and savings.
¹ See dealer for details. Eligibility and requirements are subject to change. We recommend speaking with a tax professional.
