Beginning January 1, 2025, the IRS is implementing new reporting requirements for qualified new auto loans as part of the One Big Beautiful Bill Act (OBBBA}.

This enables members to deduct up to $10,000 of qualifying auto loan interest on their tax returns.*

If a member takes out a qualifying new auto loan and pays $600 or more in interest in a calendar year, AHCU is required to:

• Report the interest to the IRS.
• Provide the member with a year-end Auto Loan Interest Statement.

*Associated Healthcare Credit Union (AHCU) is not authorized to provide tax advice. Members should consult their tax advisor or other qualified tax professional for guidance regarding their specific tax situation.

Year-end interest is printed on the statement under each loan type. You will want to review your December statement and can use this when preparing your tax return.

Yes, a loan will only qualify if they meet all the following criteria:

•  Loan originated on or after January 1, 2025.
• Loan must be secured by a lien.
• New Vehicle
• Must pay more than $600 in interest a year
• Vehicle’s final assembly is in the United States.
• Vehicle must be under 14,000 pounds

The original ownership must begin with you. That means the vehicle must have never been titled, registered or used by another owner prior to purchase.

The IRS recommends that you use a VIN Decoder to determine where your vehicle was manufactured using this link: NHSTA Vin Decoder How-To.

The VIN Decoder link will also list this information. You can also confirm by reviewing the Federal Safety Certification label on the driver’s side door. You will look for the GVWR- Gross Vehicle Weight Rating.