OBBBA Vehicle Loan Interest Deduction: IRC 163(h) Practitioner Guide (2025-2028)

1. Statutory Background: What OBBBA Added to IRC 163(h) and Why

Before the OBBBA, personal interest on consumer loans, including vehicle loans, was entirely nondeductible under IRC 163(h), which disallows any deduction for "personal interest." Congress eliminated the consumer interest deduction in the Tax Reform Act of 1986. Since that repeal, vehicle loan interest paid by an individual for personal transportation has been nondeductible personal interest with no exception.

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025 (Pub. L. 119-21), enacted a temporary exception for "qualified passenger vehicle loan interest." The provision is contained in Section 70203 of the OBBBA (verify the precise IRC section and subsection at IRS.gov). It amends IRC 163(h) to carve out a defined category of vehicle financing interest from the personal interest disallowance for a four-year window: tax years beginning in 2025, 2026, 2027, and 2028.

Congress tied the benefit to U.S. assembly. Only interest on loans for new, U.S.-assembled vehicles qualifies, so the deduction operates as an indirect subsidy for domestic vehicle manufacturing. The provision was structured as an above-the-line deduction available to all eligible individual taxpayers regardless of whether they itemize, substantially broadening its reach relative to itemized provisions.

The deduction is temporary by statute. For tax years beginning after December 31, 2028, qualifying vehicle loan interest reverts to nondeductible personal interest status under IRC 163(h) unless Congress extends or makes permanent the exception. Practitioners should flag the sunset risk in client planning discussions, particularly for clients financing multi-year loans in 2025 through 2028.

2. Definition of a Qualifying Vehicle

To support a deduction, the vehicle financed by the loan must be an "applicable passenger vehicle" as defined under the applicable OBBBA amendment to IRC 163(h) (verify at IRS.gov). All of the following requirements must be satisfied concurrently.

U.S. Final Assembly Requirement

The vehicle's final assembly must have occurred within the United States, as determined under the applicable statutory definition (verify the precise definition at IRS.gov). The proposed regulations (REG-113515-25; verify at IRS.gov) provide guidance on using the vehicle identification number (VIN) to verify U.S. assembly location through the National Highway Traffic Safety Administration (NHTSA) database. Practitioners should run VIN verification before claiming the deduction on any client return. Assembly location can differ from one model year to the next for the same make and trim level; do not assume prior-year eligibility carries forward to the current return year.

Qualifying Vehicle Classes

Under the applicable OBBBA provision (verify at IRS.gov), qualifying vehicle classes are: cars, minivans, vans, sport utility vehicles (SUVs), pickup trucks, and motorcycles. Vehicles outside these classes do not qualify. Heavy commercial vehicles manufactured primarily for freight or industrial use are not qualifying vehicles regardless of GVWR or assembly location.

Gross Vehicle Weight Rating Limit

The vehicle's gross vehicle weight rating (GVWR) must be under 14,000 pounds. Vehicles at or above 14,000 pounds GVWR, including many commercial-grade trucks, do not qualify regardless of assembly location or vehicle class.

New Vehicle Requirement

The original use of the vehicle must commence with the taxpayer. Used vehicles do not qualify, regardless of assembly location, GVWR, or class. A vehicle previously used as a demonstrator model or as a fleet vehicle is not a new vehicle for purposes of this provision; verify the IRS position on demonstrators and short-term dealer use at IRS.gov.

Purchase and Loan Timing

The loan used to finance the vehicle must have been incurred after December 31, 2024. A vehicle purchased before 2025 does not generate qualifying interest, even if loan payments and interest accrue into 2025 or a later tax year. The controlling date is loan origination, not the year in which interest is paid or the tax year of the return.

Summary: What Does Not Qualify

• Used vehicles (including certified pre-owned and previously titled vehicles)
• Vehicles with GVWR of 14,000 pounds or more
• Vehicles with final assembly occurring outside the United States
• Vehicles sold in commercial fleet transactions
• Vehicles with salvage or rebuilt titles
• Loans originated on or before December 31, 2024

3. Definition of Qualified Vehicle Interest

Even where the vehicle meets every qualifying vehicle test, the interest on the loan must independently satisfy the definition of "qualified passenger vehicle loan interest" under the applicable OBBBA amendment to IRC 163(h) (verify at IRS.gov).

Loan Origination Requirements

The indebtedness must have been incurred after December 31, 2024. The loan must be secured by a first lien on the qualifying vehicle. Second-lien loans, home equity lines of credit applied to vehicle purchases, and unsecured personal loans used to purchase qualifying vehicles do not constitute qualified vehicle interest, even where the underlying vehicle would otherwise meet every qualifying vehicle test.

Personal Use Requirement

The vehicle must be used for personal purposes. The proposed regulations (REG-113515-25; verify at IRS.gov) address vehicles used for both personal and business purposes and provide that personal use must exceed 50% of total use (verify the final threshold in the regulations at IRS.gov once finalized). Where a vehicle is used predominantly for business, the interest may instead be deductible under IRC 162 as an ordinary and necessary business expense or subject to the IRC 163(j) business interest limitation rather than the vehicle loan interest deduction provision; verify the applicable rules at IRS.gov and in current IRS guidance.

Refinancing Eligibility

The proposed regulations (REG-113515-25; verify at IRS.gov) address whether a refinanced vehicle loan retains its qualified status. As of July 2026, final regulations on refinancing had not been issued. Practitioners should verify the current IRS position at IRS.gov before advising clients who have refinanced or are considering refinancing a qualifying vehicle loan. Key questions include whether successor indebtedness is treated as incurred after December 31, 2024 and whether the first-lien requirement is satisfied through successive refinancings.

Seller-Financed Notes

Whether interest on a seller-financed vehicle note (a note held by the selling dealer or a private seller rather than a third-party financial institution) qualifies as "qualified passenger vehicle loan interest" under the applicable OBBBA provision (verify at IRS.gov) remained an open regulatory question as of July 2026. The proposed regulations address this scenario but final guidance had not been issued. Practitioners handling dealer-carry or private-party seller financing should defer to final regulatory guidance before claiming the deduction on those interest payments.

Lease vs. Purchase Distinction

Lease payments on a vehicle, including any implicit interest component of a capital or operating lease, do not constitute qualified passenger vehicle loan interest. The deduction applies only to interest on an indebtedness used to purchase a qualifying vehicle and secured by a first lien on that vehicle. Taxpayers who lease rather than purchase their vehicles cannot claim this deduction.

Related-Party Exclusion

Loans from related parties are excluded from the definition of qualified vehicle loan interest under the applicable OBBBA provision (verify at IRS.gov). The applicable exclusions reference the related-person definitions in IRC 267(b) (which includes certain family members, fiduciaries, and entities with common ownership) and IRC 707(b)(1) (partnership-partner relationships). Practitioners handling loans from family members, closely held entities, or partner-related arrangements should confirm whether the applicable related-party rules disqualify the interest before filing. For background on the IRC 267(b) related-person definitions, see the IRC 267 Related-Party Loss Disallowance and Related Persons Practitioner Guide.

Other Excluded Interest Categories

• Interest on loans for vehicles sold in fleet transactions
• Interest on loans for vehicles with salvage or rebuilt titles
• Interest exceeding the $10,000 annual deduction cap (excess is nondeductible personal interest)

4. Deduction Mechanics: Above-the-Line Treatment, AGI Phaseout, and Coordination

Above-the-Line vs. Itemized Treatment

The qualified passenger vehicle loan interest deduction is available regardless of whether the taxpayer itemizes deductions or claims the standard deduction, per the applicable OBBBA amendment to IRC 163(h) (verify at IRS.gov). Based on currently available IRS guidance (verify at IRS.gov), the deduction is claimed on Schedule 1-A (Additional Deductions), an attachment to Form 1040, not on Schedule A. Because the deduction is above the line, it reduces the taxpayer's adjusted gross income (AGI), which can in turn improve eligibility for other income-tested credits and deductions.

Verify the exact form and line number in the current IRS Form 1040 and Schedule 1-A instructions at IRS.gov before filing. Form layouts and line designations are updated annually and may differ from the guidance available when this guide was prepared.

Annual Dollar Cap

The deduction is capped at $10,000 per tax year under the applicable OBBBA provision (verify at IRS.gov). Interest paid in excess of $10,000 during the tax year is nondeductible personal interest under IRC 163(h). The cap applies per taxpayer (not per vehicle); a taxpayer financing two or more qualifying vehicles may not stack deductions above $10,000 in aggregate. Verify the per-taxpayer vs. per-vehicle treatment in the final regulations at IRS.gov once issued.

MAGI Phaseout

As of July 2026, the deduction was subject to a modified adjusted gross income (MAGI) phaseout under the applicable OBBBA provision (verify all thresholds and reduction rates at IRS.gov). The phaseout begins when MAGI exceeds $100,000 for single filers (and other non-joint filers) or $200,000 for married filing jointly filers. The deduction is reduced by $200 for each $1,000, or fraction thereof, by which the taxpayer's MAGI exceeds the applicable threshold (verify the reduction formula at IRS.gov before computing for any client).

Based on the phaseout formula described above (verify at IRS.gov), and assuming a full $10,000 maximum deduction before phaseout, the deduction is reduced to zero at approximately $150,000 MAGI for single filers and $250,000 MAGI for married filing jointly filers.

Illustrative Phaseout Calculations (Amounts Are Illustrative Only. Verify all thresholds and reduction rates at IRS.gov before use in any client matter.)

Table assumes the taxpayer paid at least $10,000 in qualifying vehicle loan interest during the year before phaseout. The phaseout applies to the lesser of actual qualifying interest and the $10,000 cap. Verify all thresholds, reduction formulas, and final computational rules at IRS.gov.

Sunset Provision

The deduction applies only to tax years beginning in 2025, 2026, 2027, and 2028. For tax years beginning after December 31, 2028, vehicle loan interest reverts to nondeductible personal interest under IRC 163(h) unless Congress extends or makes permanent the OBBBA exception. The sunset affects multi-year loan planning: interest paid in 2029 and later on a loan originated after December 31, 2024 will no longer be deductible absent new legislation. Practitioners should flag this in loan-term comparisons and in ongoing client communications.

Coordination with SALT and Other Itemized Deductions

Because the vehicle loan interest deduction is above the line, it does not compete with or displace the taxpayer's available itemized deductions. Taxpayers who itemize may claim both this deduction and their allowable itemized deductions, including the SALT deduction (subject to the OBBBA-modified cap under IRC 164; see the IRC 164 SALT Deduction Cap and PTET Practitioner Guide) and qualified residence interest under IRC 163(h)(3). The vehicle loan interest deduction and the business interest limitation under IRC 163(j) operate in entirely separate frameworks; IRC 163(j) addresses business interest expense and does not affect the personal vehicle loan interest deduction (see the IRC 163(j) Business Interest Limitation OBBBA Practitioner Guide).

5. Interaction with IRC 30D Clean Vehicle Credit and IRA Energy Provisions

IRC 30D Clean Vehicle Credit

The IRC 30D clean vehicle credit is a nonrefundable income tax credit for the purchase of qualifying new clean vehicles, including battery electric vehicles and qualifying plug-in hybrid electric vehicles. The credit operates separately from the vehicle loan interest deduction. OBBBA modified the IRC 30D credit rules; verify current IRC 30D eligibility criteria, income limits, qualifying vehicle requirements, battery sourcing requirements, and credit amounts at IRS.gov before advising any client. Do not state a specific IRC 30D credit amount as authoritative without verifying the current rules at IRS.gov.

The vehicle loan interest deduction and the IRC 30D clean vehicle credit are independent provisions under the Code. A taxpayer who purchases a new, U.S.-assembled electric vehicle may be eligible for both, subject to each provision's separate eligibility tests applied independently. The IRC 30D credit reduces tax liability dollar for dollar; the vehicle loan interest deduction reduces taxable income above the line. No statutory double-counting prohibition applies to claiming both in the same tax year for the same vehicle purchase, based on currently available IRS guidance (verify at IRS.gov). Practitioners should model each benefit independently and confirm that no anti-stacking rule has been adopted in final guidance.

Note that not every vehicle qualifying for the vehicle loan interest deduction qualifies for the IRC 30D credit, and vice versa. The IRC 30D credit imposes vehicle price caps, critical mineral and battery component sourcing requirements (modified by OBBBA), and income limits that operate independently of the vehicle loan interest deduction. See the Clean Energy Credits OBBBA Section 45Y and 48E Transferability Practitioner Guide for broader OBBBA clean energy credit context.

IRC 45Y, 48E, and Broader IRA Energy Provisions

The clean electricity production tax credit (IRC 45Y) and the advanced energy project investment credit (IRC 48E), as modified by OBBBA, apply to commercial electricity generation projects, manufacturers, and energy project investors, not to individual personal vehicle purchases. These provisions do not directly interact with the personal vehicle loan interest deduction. Practitioners serving clients with both personal vehicle purchases and commercial clean energy investments should confirm the absence of any cross-provision interaction by reviewing current IRS guidance at IRS.gov.

6. Form and Reporting: Return Location, Lender Obligations, and Substantiation

Where the Deduction Appears on the Return

Based on currently available IRS guidance (verify at IRS.gov before filing), the qualified passenger vehicle loan interest deduction is reported on Schedule 1-A (Additional Deductions), filed as an attachment to Form 1040. The deduction appears as an above-the-line item and reduces AGI. For context on the full suite of above-the-line OBBBA deductions reported on Schedule 1-A, including the tip income and overtime deduction provisions, see the Schedule 1-A OBBBA Deductions Practitioner Guide.

Verify the current form, line number, and instructions in the IRS Form 1040 and Schedule 1-A instructions at IRS.gov before filing. Form layouts, line designations, and instruction text are updated annually; the schedule-line designation applicable to the vehicle loan interest deduction may change from the guidance available at the time this guide was prepared.

Form 1098-VLI: Lender Reporting

The IRS established Form 1098-VLI (Vehicle Loan Interest) for lenders to report qualifying vehicle loan interest received. Lenders who receive $600 or more in qualifying vehicle loan interest during a calendar year are generally required to file Form 1098-VLI with the IRS and furnish a copy to the borrower (verify the current reporting threshold and all filing requirements in the current IRS instructions for Form 1098-VLI at IRS.gov). The borrower's copy is due by January 31 following the calendar year; verify the current deadline at IRS.gov.

Lender practitioners (banks, credit unions, finance companies, and dealers holding consumer vehicle paper) should review the current Form 1098-VLI instructions and verify their filing obligations at IRS.gov, including applicability thresholds, required data fields, and electronic filing requirements.

2025 Transition Relief (IRS Notice 2025-57)

For tax year 2025 only, IRS Notice 2025-57 provided transition relief permitting lenders to use Form 1098 or an equivalent annual interest statement in lieu of the then-not-yet-available Form 1098-VLI. Verify at IRS.gov whether this transition relief has been extended to cover tax year 2026 returns, or whether Form 1098-VLI is required for all 2026 reporting without exception.

VIN Requirement

Taxpayers must include the VIN of each qualifying vehicle on their tax return when claiming the vehicle loan interest deduction. The VIN requirement exists so the IRS can independently verify U.S. final assembly and other eligibility criteria. Practitioners should collect the VIN for each qualifying vehicle from every client seeking the deduction and run VIN verification through the NHTSA database or manufacturer documentation before including the deduction on the return.

Substantiation Requirements

Practitioners should advise clients to retain the following documentation (verify the complete substantiation list in applicable IRS guidance at IRS.gov; requirements may be supplemented by the final regulations once issued):

• Form 1098-VLI (or, for tax year 2025 only, the transition-relief substitute) from the lender showing the total qualifying interest received
• Original loan agreement establishing loan origination date after December 31, 2024, first-lien status, loan principal, and identification of the qualifying vehicle as collateral
• Vehicle purchase agreement or certificate of title confirming the vehicle was new at purchase (original use commenced with the taxpayer)
• VIN documentation and NHTSA database result or manufacturer's certificate confirming U.S. final assembly
• Contemporaneous mileage log or other records of personal vs. business use, if the vehicle has any business use
• MAGI computation workpapers if the taxpayer's income falls within or near the phaseout range

7. OBBBA Interaction: No Other Provision Directly Affects This Deduction

The qualified passenger vehicle loan interest deduction was enacted in Section 70203 of the OBBBA as a self-contained provision within the IRC 163(h) personal interest framework. As of July 2026, no other OBBBA provision directly modifies, coordinates with, or overrides the vehicle loan interest deduction mechanics described in this guide. Practitioners should nonetheless be aware of adjacent OBBBA provisions that may affect the same clients:

• IRC 163(j) business interest limitation: OBBBA permanently restored the EBITDA-based adjusted taxable income formula for IRC 163(j), affecting business returns. Business vehicle interest (incurred in a trade or business) is analyzed separately under IRC 163(j) and the IRC 162 ordinary and necessary expense rules, not under the vehicle loan interest deduction. See the IRC 163(j) OBBBA Practitioner Guide.
• IRC 164 SALT cap: OBBBA increased the SALT deduction cap under IRC 164, relevant for itemizing taxpayers. Because the vehicle loan interest deduction is above the line, the revised SALT cap does not directly limit the vehicle deduction, but both provisions affect the same itemizing client's overall federal tax burden. See the IRC 164 SALT Deduction Cap OBBBA Guide.
• IRC 30D clean vehicle credit: OBBBA modified the IRC 30D credit rules. Confirm current IRC 30D eligibility at IRS.gov for clients purchasing vehicles that may qualify for both the 30D credit and the vehicle loan interest deduction. No direct interaction between the two provisions had been announced as of July 2026 (verify at IRS.gov).
• Schedule 1-A new above-the-line deductions: OBBBA introduced several new above-the-line deductions reported on Schedule 1-A, including the vehicle loan interest deduction and deductions for tip income and overtime pay addressed in separate guides. Practitioners preparing 2025 and 2026 returns should confirm that all applicable Schedule 1-A deductions are identified before finalizing the return. See the Schedule 1-A OBBBA Tips and Overtime Deductions Guide.

Practitioners should review Sections 70200 through 70210 of the OBBBA (and adjacent sections as applicable) to confirm the absence of any cross-reference or limitation provision added after the date of this guide. Verify at IRS.gov.

8. Open Questions as of July 2026

As of July 2026, the following questions remained unresolved or subject to pending guidance. Practitioners should monitor IRS.gov, the Federal Register, and professional tax publications for updates.

1. Final regulations (REG-113515-25): The proposed regulations published December 31, 2025 had not been finalized as of July 2026. Until final regulations are issued, practitioners must rely on the proposed regulations and any IRS notices or FAQ guidance, all of which are subject to change. Monitor the IRS.gov rulemaking tracker for REG-113515-25 finalization.
2. Mixed-use vehicle allocation method: The proposed regulations address vehicles used for both personal and business purposes, but the final allocation method for splitting interest between the vehicle loan interest deduction and a business interest deduction had not been settled in final guidance as of July 2026. Verify the current IRS allocation methodology at IRS.gov before preparing any mixed-use vehicle return.
3. Seller-financed notes: Whether interest on a note held by the selling dealer or a private seller (rather than a third-party financial institution) qualifies as "qualified passenger vehicle loan interest" under the applicable OBBBA provision (verify at IRS.gov) remained a pending regulatory question as of July 2026. Practitioners should advise caution and defer to final guidance before claiming the deduction for seller-financed vehicle notes.
4. Refinancing and successive refinancings: The proposed regulations provide initial guidance on refinancing but final rules had not been issued. Whether a refinanced vehicle loan retains qualified status through multiple successive refinancings requires verification in the final regulations at IRS.gov before practitioners advise clients who have refinanced qualifying vehicle loans.
5. State conformity: Many states had not enacted legislation conforming to the OBBBA vehicle loan interest deduction as of July 2026. State conformity varies widely; a federal deduction does not flow automatically to a state return in rolling-conformity states if the OBBBA amendment postdates the state's last conformity date. Practitioners must independently verify each applicable state's conformity status for each client's state of residence or domicile.
6. Form 1098-VLI finalization and 2026 lender obligations: The IRS was in the process of finalizing Form 1098-VLI procedures and instructions as of the date of this guide. Lender practitioners should verify current filing requirements, reporting thresholds, and deadlines for 2026 at IRS.gov before advising clients with lender filing obligations.
7. IRC 280F interaction for mixed-use vehicles: IRC 280F imposes limitations on depreciation and expensing for listed property (including passenger automobiles) used in business. Where a vehicle is used partly for business and partly personally, the relationship between IRC 280F depreciation limits and the personal-use component of the vehicle loan interest deduction requires clarification. Verify the current IRS position at IRS.gov before advising clients with vehicles that have both uses.

9. Practitioner Checklist

Use this checklist for each client seeking to claim the qualified passenger vehicle loan interest deduction. All items reference requirements under the applicable OBBBA amendment to IRC 163(h) (verify each item at IRS.gov before filing; requirements may be updated by final regulations once issued).

• 01 Loan origination date: Confirm the loan was incurred after December 31, 2024. Collect the loan agreement showing the origination date. Loans originated in 2024 or earlier do not qualify regardless of vehicle assembly location or when interest payments are made.
• 02 First-lien verification: Confirm the loan is secured by a first lien on the qualifying vehicle. Second-lien financing, home equity-based vehicle financing, and unsecured personal loans are excluded from the deduction.
• 03 New vehicle status: Verify the vehicle was new at the time of purchase (original use commenced with the taxpayer). Obtain the purchase agreement confirming first-owner status. Certified pre-owned and previously titled vehicles do not qualify.
• 04 U.S. assembly via VIN verification: Run the VIN through the NHTSA database or obtain the manufacturer's certificate of assembly origin to confirm U.S. final assembly. Document the result and retain it in the client workpapers. Do not assume assembly location based on brand name or country of parent company.
• 05 Vehicle class and GVWR: Confirm the vehicle falls within a qualifying class (car, minivan, van, SUV, pickup truck, or motorcycle) and that the GVWR is under 14,000 pounds. Collect the manufacturer-stated GVWR from the door jamb sticker, window sticker, or vehicle title.
• 06 Related-party screen: Confirm the lender is not a related party under IRC 267(b) or IRC 707(b)(1). Family loans and financing from closely held entities in which the taxpayer has an ownership interest may disqualify the interest. See the IRC 267 Related-Party Guide for the applicable definitions.
• 07 Fleet and salvage exclusions: Confirm the vehicle was not sold in a fleet transaction and does not carry a salvage or rebuilt title. Either condition disqualifies the interest under the applicable OBBBA provision (verify at IRS.gov).
• 08 Personal use documentation: Where the vehicle has any business use, obtain contemporaneous mileage records or other documentation establishing that personal use exceeds 50% of total vehicle use (per proposed regulations REG-113515-25; verify the final personal-use threshold at IRS.gov once final regulations are issued).
• 09 MAGI phaseout computation: Compute the client's MAGI and apply the phaseout formula if MAGI is between $100,000 and $150,000 (single) or $200,000 and $250,000 (married filing jointly). Verify current phaseout thresholds and the reduction rate of $200 per $1,000 at IRS.gov (Amounts Are Illustrative Only; verify all figures before use).
• 10 Form 1098-VLI collection: Obtain Form 1098-VLI (or, for tax year 2025, the Notice 2025-57 transition-relief substitute) from the client's lender. Verify the reported interest amount against the client's own loan statements and reconcile any discrepancy before including the deduction on the return.
• 11 VIN on return: Include the qualifying vehicle's VIN on the tax return as required. Confirm VIN accuracy against the loan documents, vehicle title, and NHTSA verification result. Inaccurate or missing VINs may trigger IRS scrutiny.
• 12 State conformity verification: Confirm whether the client's state of residence has enacted conforming legislation adopting the federal vehicle loan interest deduction. A federal Schedule 1-A deduction does not automatically reduce state taxable income in states that have not conformed to OBBBA. Check the applicable state's tax agency website or revenue ruling for current conformity status.

10. Frequently Asked Questions

Related Practitioner Guides

• IRC 163(j) Business Interest Limitation: OBBBA ATI Restoration Practitioner Guide -- business vehicle interest incurred in a trade or business is analyzed under IRC 163(j) and the IRC 162 ordinary and necessary expense rules, not under the personal vehicle loan interest deduction; practitioners handling S-corps, partnerships, and self-employed clients with vehicle financing should review both sets of rules separately.
• IRC 164 SALT Deduction Cap and PTET Practitioner Guide -- OBBBA raised the SALT deduction cap under IRC 164; for itemizing taxpayers, the above-the-line vehicle loan interest deduction and the revised SALT cap interact within the overall OBBBA itemized deduction planning analysis.
• IRC 267 Related-Party Loss Disallowance and Related Persons Practitioner Guide -- the related-party loan exclusion from qualified vehicle loan interest turns on the IRC 267(b) and IRC 707(b)(1) related-person definitions; this guide explains those definitions in the broader context of related-party transactions.
• Clean Energy Credits OBBBA Section 45Y and 48E Transferability Practitioner Guide -- for clients purchasing qualifying electric vehicles who may also be eligible for the IRC 30D clean vehicle credit, this guide provides context on the broader OBBBA clean energy credit and transferability framework.
• Schedule 1-A OBBBA Deductions Practitioner Guide -- the vehicle loan interest deduction is reported on Schedule 1-A alongside other OBBBA above-the-line deductions; this guide covers the full Schedule 1-A workflow and the complete set of OBBBA above-the-line deductions for 2025 and 2026 returns.
• IRC 280F: Listed Property and Luxury Vehicle Depreciation -- a client who deducts qualified vehicle loan interest under the OBBBA IRC 163 above-the-line deduction may also be depreciating the same vehicle under the IRC 280F annual cap system; the two provisions are independent -- the interest deduction is governed by the OBBBA rules and the depreciation deduction is governed by IRC 280F -- but practitioners should account for both on the same return, including the IRC 274(d) substantiation requirement that applies to both.

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