Auto Loan Interest Deduction
Starting July 4, 2025, a new federal law — the One Big Beautiful Bill Act (OBBBA) — allows eligible customers to deduct up to $10,000 per year in interest on auto loans for new personal-use vehicles that are final-assembled in the United States.
That’s great news if you’re shopping for a new Subaru.
Subaru has a strong history of building vehicles in America, and many of our most popular models qualify under this new program. That means choosing a Subaru may not only give you the vehicle you want — it could also lead to serious tax savings.
Come see us to learn which models are eligible and how you can take advantage of this limited-time benefit.
Save on Your New Subaru with the Federal Auto Loan Interest Deduction
What Is the Deduction?
This federal incentive applies to new, personal-use vehicles with loans that begin between January 1, 2025 and December 31, 2028. The vehicle must be brand new, not previously titled or owned, and the loan must be secured by a first lien. The vehicle also needs to be assembled in the United States.
You can check eligibility by looking at the Vehicle Identification Number (VIN). VINs starting with 1, 4, or 5 indicate final assembly in the U.S. Our team is here to help confirm whether a specific model qualifies.
Which Subaru Vehicles Qualify?
This deduction applies to new Electric Vehicles (EVs), Hybrid vehicles, and Internal Combustion Engine (ICE) vehicles with loans originating between January 1, 2025, and December 31, 2028.
- Subaru Ascent – Spacious 3-row SUV with standard AWD, designed for families and long adventures
- Subaru Crosstrek – A versatile, fuel-efficient crossover ready for daily drives or weekend getaways
- Subaru Legacy – A midsize sedan that delivers comfort, safety, and confidence in all conditions
- Subaru Outback – Rugged, capable, and built for adventure with the versatility of a crossover
Who Is Eligible?
This tax deduction begins to phase out for:
- Individuals with modified adjusted gross income over $100,000
- Joint filers with income over $200,000
As long as your income is within those limits and you’re financing a qualifying vehicle for personal use, you may be eligible to claim this deduction on your federal tax return.
While our team can help you find an eligible Subaru, we cannot offer tax advice. We encourage all customers to consult with a tax professional to understand how this benefit may apply to their specific situation.
What You Can Do Now
- Browse our inventory of Subaru vehicles
- Ask our team to help check the VIN for eligibility
- Speak with our finance department about flexible loan options
- Consult a tax expert to make sure you’re ready to take advantage of this deduction
Visit Lee's Summit Subaru Today
There’s never been a better time to buy a new Subaru. With the opportunity to deduct up to $10,000 in loan interest over the year, this new federal incentive adds even more value to the vehicle you’ve been considering.
Stop by Lee's Summit Subaru and let our team help you find the perfect U.S.-assembled Subaru — and drive away with confidence and potential savings.
Disclaimer: Available for eligible individuals on new qualifying vehicles assembled in the U.S. Only applies to interest paid in tax years 2025–2028 on new debt contracted after 12/31/2024. Tax deductions subject to change and filing requirements. Income restrictions and other limitations may apply. Consult your tax, legal, or accounting professional if you have any questions. This information does not constitute tax, accounting, or legal advice. Deduction subject to federal laws and regulations and manufacturing constraints. Applies to all 2025 Subaru Outback, Legacy, and Ascent models, and Crosstrek Sport, Crosstrek Limited, and Crosstrek Wilderness. Also applies to all 2026 Ascent and Forester models, and all Crosstrek models except for Hybrid.
The information provided on this page is for general informational purposes only and does not constitute tax, legal, or financial advice. Customers may only qualify for the federal auto loan interest deduction if specific IRS criteria are met, including but not limited to: income level, loan terms, vehicle use, and U.S. final assembly of the vehicle. Customers are strongly encouraged to consult with a qualified tax professional to determine their personal eligibility. Lee's Summit Subaru does not guarantee qualification for any tax benefit. Program requirements and tax laws are subject to change without notice.