EV $10K Auto Loan Interest Deduction Guide [September 2025]

At Huston Cadillac, we know buyers want clear answers about incentives. The new Big Beautiful Bill At Huston Cadillac, we aim to make EV savings clear. The Big Beautiful Bill (BBB) changed how buyers can save. This guide shows what still applies now and what comes next for shoppers in Central Florida.

Which EVs still qualify for federal purchase credits?

The Clean Vehicle Tax Credit is still in effect for a short time.

• New EVs: up to $7,500.
• Used EVs: up to $4,000.
• End date: September 30, 2025.

To claim it, your car must:

• Be built in North America. (Check if the VIN starts with 1, 4, or 5)
• Meet battery rules.
• Stay under price caps: $55,000 for sedans; $80,000 for SUVs and trucks.
• Be bought by a buyer under the income caps.

Income caps:

• Single: $150,000 AGI.
• Head of household: $225,000 AGI.
• Married filing jointly: $300,000 AGI.

Examples that may qualify before the deadline:

• Cadillac Lyriq
• Tesla Model 3 and Model Y
• Ford Mustang Mach-E (U.S. trims)
• Chevrolet Blazer EV

What changes after September 30, 2025?

The purchase credit ends on that date. After that, buyers cannot claim the $7,500 or $4,000 credit. The BBB adds a new path to save. It is an auto loan interest deduction.

How does the $10,000 auto loan interest deduction work?

This new deduction starts in October 2025 and runs through 2028. It is not a rebate. It lowers your taxable income.

Steps:

1. Buy a new, U.S.-built vehicle.
2. Finance it with a loan for personal use.
3. You may deduct up to $10,000 in loan interest per year.

Key limits:

• New vehicles only.
• Personal use, not fleets.
• Income phase-out starts at $100,000 (single) and $200,000 (joint).
• Fully phased out at $150,000 (single) and $250,000 (joint).

Which EVs qualify for the loan interest deduction?

The main rule is U.S. assembly. Battery sourcing rules do not apply to this deduction.

Examples that may qualify:

• Cadillac Lyriq
• Chevrolet Blazer EV
• Tesla Model 3 and Model Y
• Ford Mustang Mach-E (U.S.-built)

Tip: Check the window sticker or VIN for build site. Your dealer can confirm.

Can you still get a Tax credit and save on used EVs in 2025?

Yes, but only with the purchase credit.

• Used EV credit: up to $4,000.
• Deadline: the sale must be done by September 30, 2025.
• The loan interest deduction does not apply to used cars.

Program	Maximum Benefit
New EV purchase credit (through Sept. 30, 2025)	Up to $7,500
Used EV purchase credit (through Sept. 30, 2025)	Up to $4,000
New EV loan interest deduction (2025–2028)	Up to $10,000 interest per year

Should you buy now or wait for After September?

It depends on your plan.

• Want a purchase credit? Buy before September 30, 2025.
• Plan to finance for years? The interest deduction may help more.

We can walk you through both paths and run the numbers with you. Give us a call today to get started.

Visit Huston Cadillac, Your Dealer Serving Central Florida

Looking for a trusted Cadillac dealer near Dundee, Wahneeta, or Eagle Lake? Huston Cadillac offers a full selection of new and pre-owned models, including the Cadillac Lyriq, with experts ready to guide you through every step. Whether you need sales, service, or parts, our team is here to make the process simple and stress-free.

If you’re comparing models like the Escalade and Escalade ESV, wondering about service needs, or exploring electric options like the Escalade and Escalade IQ, we have detailed guides to help you choose. You can also browse our current inventory anytime at Huston Cadillac.For buyers interested in understanding which electric vehicles qualify for current incentives, our team can provide clear answers and help you select a model that meets every requirement. Visit us today or reach out to speak with a Cadillac specialist who can walk you through your options.

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Disclaimer: All information is provided for general informational and entertainment purposes only. While we strive for accuracy, we cannot guarantee that all content is complete, current, or error-free. Any reliance you place on such information is strictly at your own risk. This article may include opinions and is not endorsed by, or officially affiliated with, any vehicle manufacturer or brand. Always consult official sources – such as the vehicle’s owner’s manual, authorized dealerships, or certified professionals – for the most up-to-date and personalized information.

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