Qualifying for the New U.S.-Assembled Vehicle Interest Deduction: A Guide for Local Drivers

Hey there! Whether you’re heading out to Deep Creek Lake or navigating the winter roads of Garrett County every day for work, there is  big news for 2026 that makes your next vehicle purchase much more affordable!

Thanks to the One Big Beautiful Bill Act (OBBBA) signed into law last year, many of our neighbors in Accident, MD can now qualify for a significant federal tax deduction on the interest paid for a new car loan. If you’ve been eyeing a new Jeep or Ram, this could mean thousands of dollars back in your pocket.

Here is everything you need to know to qualify at Auto Land of Accident.

What is the New Interest Tax Deduction?

For the first time in decades, the federal government is allowing taxpayers to deduct up to $10,000 per year in interest paid on a qualifying auto loan.

The best part? You don’t even have to itemize your taxes to get it. This deduction is available to those who take the standard deduction as well, making it accessible to almost every driver in Garrett County.

The 4 Main Requirements to Qualify:

1. The “Made in America” Rule: The vehicle must have its final assembly in the United States.
2. Brand New Only: The deduction applies only to new vehicles purchased after January 1, 2025. Used cars and leases do not qualify.
3. Personal Use: The vehicle must be for personal, non-commercial use and weigh under 14,000 lbs.
4. Income Limits: The benefit is most effective for individuals making under $100,000 or married couples filing jointly under $200,000 (though partial deductions are available above those amounts).

Which CDJR Models at Auto Land Qualify?

At Auto Land of Accident, we take pride in carrying some of the most iconic American-made vehicles. To qualify for this deduction, the “Final Assembly Point” on the window sticker must be in the U.S.

Top Qualifying Models in Our Inventory:

• Jeep Wrangler: Proudly assembled in Toledo, Ohio.
• Jeep Gladiator: Also built in the legendary Toledo Assembly Complex.
• Jeep Grand Cherokee: Assembled right in the heart of Detroit, Michigan.
• Ram 1500: Built in Sterling Heights, Michigan.
• Dodge Durango: Assembled in Detroit, Michigan.

Note: Some models like the Chrysler Pacifica (assembled in Canada) or the Ram 2500 (assembled in Mexico) generally do not qualify for this specific interest deduction. Always check the VIN or ask our team to verify the assembly point for you!

How to Claim Your Deduction

When you buy your vehicle at Auto Land, we’ll make sure you have all the documentation you need for tax season.

• Check the VIN: We can help you verify that your chosen vehicle’s VIN starts with a 1, 4, or 5, which indicates U.S. assembly.
• Keep Your Interest Statement: Your lender will provide an annual statement (similar to a 1098 for a mortgage) showing the interest you paid.
• File Schedule 1-A: When you file your taxes, you’ll just need to provide your vehicle’s VIN on the new IRS Form Schedule 1-A.

Why Buy in Accident, MD?

At Auto Land, we aren’t just a dealership; we’re your neighbors. We understand the specific needs of Garrett County drivers, from needing 4×4 capability for our snowy winters to wanting the best value for your hard-earned money.

By choosing a U.S.-assembled vehicle, you’re not just getting a tax break; you’re supporting American workers and getting a truck or SUV built to handle everything Maryland’s mountains can throw at it.

Ready to see how much you could save? Browse our U.S.-Assembled Inventory here!