Are you in the market for a new Toyota SUV in Virginia Beach, VA? A groundbreaking new federal tax benefit known as the OBBBA, or One Big Beautiful Bill Act, might make that purchase even smarter. This new act allows taxpayers to deduct up to $10,000 per year in interest paid on a qualifying new vehicle loan. Here at Hall Toyota Virginia Beach, we want to help drivers understand which new Toyota SUV models may be eligible.
What is the OBBBA Tax Deduction?
The OBBBA is a new tax provision specifically for new vehicles purchased after December 31, 2024. For the 2025 to 2028 tax years, it allows you to claim an “above-the-line” deduction for auto loan interest, which means that you don’t have to itemize your taxes to get the benefit. The deduction is limited to $10,000 per year and begins to phase out for individuals with a modified adjusted gross income over $100,000.
Final Assembly in the USA
This new benefit is designed to help American manufacturing, so the most crucial requirement is that the vehicle must have its final assembly in the United States. Additionally, this law only applies to new vehicles purchased for personal use and secured with a first-lien loan.
Toyota SUVs that Qualify
Toyota has a long-standing commitment to vehicles whose final assembly is in the United States. Qualifying Toyota SUV models currently include:
- Toyota Corolla Cross
- Toyota RAV4
- Toyota Highlander
- Toyota Grand Highlander
- Toyota Sequoia
In addition, several Toyota sedans and minivans apply for the deduction.
Confirm Your Eligibility with Hall Toyota Virginia Beach
This new tax law is an excellent opportunity to receive a tax deduction on a new Toyota SUV, but eligibility can depend on your vehicle, loan, and income. We recommend consulting with a tax accountant to confirm your eligibility, and the team here at Hall Toyota Virginia Beach is happy to help as well. Visit us today!
Final assembly location may vary by trim and VIN. To confirm eligibility for any applicable tax credit, review your vehicle’s window sticker or consult your Toyota dealer.
