Treasury and IRS Issue Guidance on New Car Loan Interest Deduction — What It Means for the Marine Industry
Treasury & IRS Issue Guidance on a New Car Loan Interest Deduction — What It Could Mean in the Marine World
Guidance under the “One, Big, Beautiful Bill (OBBB)” describes a new deduction for interest paid on qualified passenger vehicle loans, plus reporting requirements for certain businesses.
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have issued guidance on a new tax benefit tied to interest paid on car loans. While the rule applies broadly, it’s especially relevant in marine and waterfront operations where vehicles are part of the day-to-day workflow.
A new deduction for vehicles purchased after 2024
Under the guidance, taxpayers may deduct interest paid on qualified passenger vehicle loans for vehicles purchased after December 31, 2024.
Importantly, the deduction is available to both:
- Taxpayers who take the standard deduction
- Taxpayers who itemize deductions
Why this matters in marine and marina-heavy regions
In practice, many marine professionals rely on vehicles to support work spread across docks, ports, shipyards, and service providers—making vehicle financing and related interest a meaningful planning item.
New reporting requirements for businesses
The guidance also introduces compliance obligations for businesses. Any business that receives $600 or more in interest from an individual during a calendar year on a qualified passenger vehicle loan must comply with reporting requirements.
Public feedback is open
Treasury and the IRS are requesting feedback on proposed regulations, including eligibility requirements for taxpayers and lenders/businesses. Comments must be submitted through Regulations.gov by February 2.
A brief conversation can clarify risk, documentation priorities, and next steps—before issues surface during an audit or transaction.