If you're exploring new cars for sale, you may have questions about how the One Big Beautiful Bill Act (OBBBA) affects your potential tax benefits. With federal guidelines evolving and qualification rules differing from one model to the next, understanding the basics can help you make a more informed purchase. MileOne Autogroup explains what shoppers need to know before choosing a new vehicle and how our team can support your research along the way.
Do Used Cars Qualify for OBBBA Deductions?
Under the current requirements, OBBBA deductions apply exclusively to new vehicles built after December 31, 2024, and by December 31, 2028 (when the program expires). A model must be purchased in new condition at the time of sale; pre-owned, certified, or loaner units are not eligible, regardless of mileage or prior use. If you're considering a vehicle that has been test-driven or was previously titled, it's essential to confirm its classification before assuming eligibility.
Do Leased Vehicles Qualify?
No. You'll have to finance a new car rather than leasing.
Why Does Final Assembly in the USA Matter?
A major provision of the OBBBA is that qualifying vehicles must undergo final assembly within the United States. This designation refers specifically to the location where the vehicle's last substantial manufacturing steps occur. A model may include components sourced from across the globe, but as long as the final assembly plant is located domestically, the vehicle may still qualify. Because manufacturers may adjust production locations from year to year-or even by trim-eligibility is not universal across an entire model lineup, so check with your dealer.
Does Eligibility Vary by Trim or Drivetrain?
Yes. A model built in multiple plants or configured in several drivetrains may have varying eligibility. For instance, a front‑wheel‑drive trim assembled in one facility may qualify, while an all‑wheel‑drive trim assembled elsewhere may not. These distinctions highlight the importance of reviewing the VIN for any vehicle you are considering. Both your dealership representative and a qualified tax professional can verify the VIN against the most recent OBBBA compliance lists.
Which Models Qualify?
More than you might think. A partial list includes:
- Acura Integra, Acura MDX, Acura RDX, Acura TLX, and Acura ZDX
- BMW X3, BMW X5
- Cadillac CT4, Cadillac XT6
- Chevy Silverado 1500
- Dodge Durango
- Ford Bronco, Ford Escape, Ford Explorer, Ford F-150
- Honda Accord, Honda Civic, Honda CR-V, Honda Passport, Honda Pilot
- Hyundai Elantra, Hyundai IONIQ 5, Hyundai Santa Cruz, Hyundai Santa Fe, Hyundai Tucson
- Jeep® Gladiator, Jeep Grand Cherokee, Jeep Wrangler
- Mazda CX-50
- Mercedes-Benz EQE SUV, Mercedes-Benz GLE
- Nissan Altima, Nissan Frontier, Nissan LEAF, Nissan Pathfinder, Nissan Rogue
- Ram 1500
- Subaru Crosstrek, Subaru Outback
- Toyota Camry, Toyota Corolla, Toyota Corolla Cross, Toyota RAV4, Toyota Tundra
- Volkswagen Atlas and VW Atlas Cross Sport
- Volvo EX90
How Do Buyers Claim OBBBA Deductions?
If your new vehicle and your income meet the necessary federal guidelines, you'll claim the deduction on your annual federal tax return. Income caps, filing status, and other personal financial factors may influence your eligibility. While our MileOne Autogroup dealerships cannot provide tax advice, we are always happy to supply the documentation your tax advisor may require, including the vehicle's purchase agreement and VIN details.
Where Can I Get More Guidance?
If you have additional questions about OBBBA qualifications or want to review eligible models and new car specials in person, we invite you to stop by your nearest MileOne Autogroup location. Our team is ready to walk you through available new vehicles and help identify which models may meet OBBBA's final assembly requirements. While not every new car qualifies, our goal is to provide clarity and transparency so you can move forward confidently. Call, click, or visit today to get started.
