What This Deduction Means for Drivers in Gainesville and North Central Florida

Buying a new car is already a big decision — and a big investment. Now there’s a new OBBBA tax deduction you should know about that could ease some of that financial bite when you finance a qualifying new vehicle. Starting with purchases made January 1, 2025 and continuing through the 2028 tax year, federal tax law lets eligible buyers deduct up to $10,000 per year in interest paid on qualifying auto loans.

This benefit doesn’t require itemizing deductions, which means even folks who normally take the standard deduction on their tax return might still be able to use it. It’s designed to support personal vehicle buyers, not business or fleet purchases, and is part of broader federal tax changes.

This could be especially helpful for buyers in Gainesville who are considering financing a new Subaru that’s assembled in the United States.

Subaru Models Most Likely to Qualify

This deduction is based on Vehicle Identification Number (VIN). While there are general rules of thumb for Subaru VINs starting with a 1, 4 or 5 being assembled in the U.S., you cannot count on that. You should look up the VIN of your vehicle of interest through National Highway Traffic Safety Administration (NHTSA) VIN lookup and it will tell you where the vehicle was assembled.

That said, to narrow your search, these models will mostly likely qualify as having been assembled in the United States:

• New Subaru Ascent
• New 2026 Subaru Forester
• New 2026 Subaru Crosstrek (gasoline models)
• Remaining New Subaru 2025 Outback

Note that while the Subaru Outback was being built in the United States in 2025, the 2026 model year production has moved to Japan.

How to Tell If You'll Qualify for this Deduction

To take advantage of this new OBBBA tax deduction, both the buyer and the vehicle must meet certain requirements:

• New vehicles only: The original use has to start with you, the buyer.
• Personal use only: Cars used primarily for business do not qualify under this deduction.
• U.S. final assembly: The vehicle must have undergone its final assembly in the United States — which you can verify via the VIN or manufacturer details. Look at the vehicle's window sticker or use the NHTSA VIN Lookup.
• Loan requirements: Only secured auto loans qualify. Leases do NOT qualify. You’ll need the lender’s interest-paid statement to claim the deduction.
• Buyer Income requirements: Higher earners may see their deductions reduce or phase out entirely when modified adjusted gross income exceeds $100,000 for single filers or $200,000 when filing jointly.

Subaru models assembled in the U.S. like the 2026 Crosstrek gas models and 2026 Forester models are often eligible, but eligibility can vary by model year and trim, so it’s smart to verify that the VIN qualifies.

Step-by-Step: How to Claim the Deduction

Here’s a plain-spoken walk-through of the claiming process:

1. Get your loan documentation: Your lender will send forms showing how much interest you paid during the year.
2. Verify your vehicle’s eligibility: Check the vehicle’s final assembly location — this matters for qualifying. Use the NHTSA VIN Lookup or Contact Us for assistance.
3. Include the VIN on your tax return whether you take the standard deduction or itemize: When you file, you’ll report the vehicle’s VIN to support your deduction.
4. Attach the deduction where required: Depending on how you file, this may involve specific IRS forms.
5. Keep all paperwork: Hold onto the sales agreement, finance documents, and VIN info in case of IRS inquiries.
6. Talk to a pro: Tax rules change, and personal situations vary — a CPA or tax advisor can be a big help.

This process applies no matter if you’re in Gainesville, Ocala or Lake City — as long as the vehicle and loan meet the federal criteria.

What This Tax Deduction Does Not Do

It’s important to know what this deduction doesn’t do:

• It’s not a cash rebate at the time of purchase.
• It’s not a tax credit like some electric vehicle incentives used to be.
• It does not apply to leases or used vehicles.
• It does not guarantee a specific dollar amount back on your tax return — actual savings depend on your individual tax situation.

Should You Talk to a Tax Professional?

We recommend consulting with a qualified tax professional. When buying a new vehicle near Ocala or Lake City, you'll want to understand how this deduction fits your overall tax picture. This page is informative, but personalized tax guidance requires a qualified advisor familiar with the latest IRS rules.

How Your Local Gainesville Subaru Dealership Can Help

At our Gainesville Subaru Dealership, we can help you explore our inventory of new Subaru models that may qualify for this tax deduction when financed properly. We’re happy to point you toward vehicles assembled in the U.S., explain how financing works, and help gather the documentation you’ll need — all while serving drivers in Gainesville and across north central Florida.

You’re always welcome to visit our showroom, browse our new inventory online, or speak with a product specialist to see how these tax changes could work in your favor.

This content is for informational purposes only and should not be considered tax, legal, or financial advice. Always consult with a qualified tax professional regarding your individual situation.