The Big Beautiful Bill rewards buyers who choose American‑assembled vehicles. Finance a qualifying Hyundai today and trim hundreds off your federal tax bill every year.
Under the BBB’s new Made-in-America Auto-Loan Interest Deduction, financing a brand-new vehicle whose final assembly occurred in the United States (look for a VIN starting with 1, 4 or 5 and confirm on the window sticker) lets you deduct up to $10,000 of the interest you pay each year on that loan for purchases made between 2025 and 2028.
The break is “above the line,” so even standard-deduction filers can use it, but it phases out once your AGI tops $100k as a single filer or $200k as a married filer. To claim, all you need to do is keep the purchase contract and lender interest statements, and claim the amount on the forthcoming IRS form for “qualified passenger-vehicle loan interest” when you file.
On a typical $40k loan at roughly 8% APR, that’s roughly $600 in federal tax savings if you’re in the 20% bracket—every year you remain under the cap. In short: choose a U.S-built model, finance smart, and keep hundreds in your pocket instead of handing it to the IRS.
| Loan Amount | APR* | Year‑1 Interest | Tax Deduction | Estimated Tax Savings† |
|---|---|---|---|---|
| $40,000 | 8.0% | $3,000 | $3,000 | $600 (20% tax rate) |
| $50,000 | 7.5% | $3,750 | $3,750 | $750 |
*APR based on average new‑car rate (July 2025). †Savings vary by tax bracket; consult a tax pro.
The Hyundai Santa Fe, Hyundai Tucson, Hyundai Santa Cruz, IONIQ-5, and IONIQ-9 all qualify for the Big Beautiful Bill's car loan interest deduction.
| Model | Trim Range | Assembly Plant |
|---|---|---|
| Hyundai Santa Fe | SE, SEL, XRT, Limited, and Calligraphy | Hyundai Motor Manufacturing Alabama |
| Hyundai Tucson | SE, SEL, SEL Convenience XRT, and Limited | Hyundai Motor Manufacturing Alabama |
| Hyundai Santa Cruz | SE, SEL, SEL Activity, XRT, and Limited | Hyundai Motor Manufacturing Alabama |
| Hyundai Ioniq 5 | SE Standard Range, SE, SEL, XRT, and Limited | Hyundai Motor Group Metaplant America |
| Hyundai Ioniq 9 | S, SE, SEL, Limited, Calligraphy, Calligraphy Design | Hyundai Motor Group Metaplant America |
Keep your loan interest records and the purchase contract. When you file your 2025–28 tax return, enter the deductible amount on the designated IRS line (guidance pending). You do not need to itemize.
Yes. If your new Hyundai is also an eligible EV, you can stack the $7,500 clean‑vehicle credit (available through Sept 30 2025) with this interest deduction.
Yes, the Ioniq 5 and Ioniq 9 qualify for both the $7,500 federal tax credit and the Big Beautiful Bill's new auto loan tax deduction.
The deduction applies to interest paid on qualifying loans originated 2025‑28. If you refinance, only interest on the original qualifying loan counts—TBD pending IRS clarification.
