Enjoy tax incentives on new Lincoln vehicles
A new federal tax deduction* lets qualifying customers deduct up to $10,000 annually on interest paid for new vehicles made in the United States. Many Lincoln vehicles are proudly assembled right here in the U.S.**, making them eligible for this tax break.
Made-in-America Auto-Loan Interest Deduction Overview
Under new federal legislation, 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 upcoming 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 wisely, and keep hundreds in your pocket instead of sending it to the IRS.
- What you get: Deduct up to $10,000 in auto-loan interest per year (2025-2028 purchases).
- Who qualifies: Buyers of new, personal-use vehicles whose final assembly is in the United States.
- Income limits: Benefit begins phasing out above $100k (single) / $200k (joint).
- No itemizing required: It's an above-the-line adjustment—standard-deduction filers welcome.
How Much Could You Save?
| 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.
Which Lincoln Vehicles Qualify For These Incentives?
The Lincoln Corsair, Aviator, and Navigator are all eligible.
| Model | Assembly Plant |
|---|---|
| Lincoln Corsair | Louisville Assembly Plant, Kentucky |
| Lincoln Aviator | Chicago Assembly Plant, Illinois |
| Lincoln Navigator | Kentucky Truck Plant, Kentucky |
5 Questions To Ask Us While You Shop
- Can you confirm the vehicle's final assembly location on the window sticker?
- Will my lender issue a year-end interest statement?
- Is the vehicle new and untitled? (Demos and used cars don't qualify.)
- Do I meet the income limits for the full deduction?
- Can you provide a VIN eligibility printout for my records?
Frequently Asked Questions
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 Lincoln is also an eligible EV, you can stack the $7,500 clean-vehicle credit (available through Sept 30 2025) with this interest 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.