Understanding the One Big Beautiful Bill Act (OBBBA) car loan interest deduction might help Maryland drivers save when financing a new Volvo vehicle. The legislation allows qualifying buyers to deduct up to $10,000 annually in loan interest for vehicles with final assembly in the USA. This benefit applies to purchases made with qualifying loans between 2025 and 2028. Volvo Cars Silver Spring helps you determine which models qualify and how to maximize these tax advantages.
Understanding OBBBA Interest Deduction Benefits
The One Big Beautiful Bill Act creates an above-the-line tax deduction for auto loan interest through 2028. Eligible buyers can deduct up to $10,000 per year without itemizing. This benefit applies to vehicles under 14,000 pounds purchased for personal use with first-lien secured loans. The deduction phases out for single filers earning over $100,000 and joint filers over $200,000.
Which Volvo Models Have Final Assembly in the USA?
Vehicles must have final assembly in the United States to qualify. Check your Vehicle Identification Number; VINs starting with 1, 4, or 5 typically indicate US assembly. The new Volvo EX90 electric SUV qualifies for this deduction. This flagship model rolls off the line at Volvo’s South Carolina plant. The Volvo XC60 mid-size SUV joins US production in late 2026. Once assembly begins, qualifying models purchased with qualifying loans may be eligible for the interest deduction.
What About Other Volvo Models?
Most current Volvo models have final assembly in Gothenburg, Sweden. These vehicles deliver exceptional Scandinavian design and Swedish safety innovation, but do not meet the US assembly requirement. Buyers seeking these models should focus on the exceptional engineering and premium materials that define every new Volvo vehicle, regardless of tax benefit eligibility.
Get Expert Advice at Volvo Cars Silver Spring
Our team at Volvo Cars Silver Spring helps you navigate vehicle selection and tax benefit qualification. We provide detailed VIN verification and loan structure guidance to maximize your savings. Schedule your Volvo EX90 test drive today to experience Swedish automotive excellence built in America, combining environmental consciousness with financial advantages.