2025-2028 Federal Tax Deduction Available for Harley-Davidson® Riders
Harley-Davidson® riders may now qualify for a federal tax deduction of up to $10,000 on interest paid for financing a new U.S.-assembled motorcycle.
Thanks to a new federal provision, individual consumers who finance a qualifying Harley-Davidson motorcycle between January 1, 2025 and December 31, 2028 may be eligible for this significant tax benefit.
What's the Benefit?
- Up to $10,000/year tax deduction on interest paid
- Applies to new, U.S.-assembled motorcycles only
- Available for personal-use loans originated in 2025–2028
- Eligible for both itemized and standard deduction filers
- Income caps apply:
- $100,000 for individuals
- $200,000 for married couples filing jointly
How to Qualify
- Visit our dealership and select a new Harley-Davidson® motorcycle.
- Make sure the VIN starts with 1HD – this confirms U.S. assembly.
- Finance your new motorcycle in 2025 or later.
- Keep your loan documents and interest payment records.
- At tax time, deduct the eligible interest you paid (up to $10,000).
- Consult your tax professional to file correctly and maximize your benefit.
Quick Reference Guide
Eligible Vehicles: New, personal-use motorcycles assembled in the U.S. (VIN begins with 1HD)
Loan Timing: Financed between Jan 1, 2025 – Dec 31, 2028
Deduction Cap: Up to $10,000/year in interest
Income Limits: $100k (individual), $200k (married joint) before phase-out
Eligibility: Both itemized and standard deduction filers
Not Eligible: Used motorcycles, business/commercial purchases, Revolution Max models (VIN starts with MLY)
Frequently Asked Questions
Q: Is this a discount at the time of purchase?
A: No. This is a tax deduction claimed when filing your taxes, not a rebate or dealership incentive
Q: What if I don't itemize my deductions?
A: You can still claim the deduction even if you take the standard deduction.
Q: How do I know if my motorcycle qualifies?
A: If the VIN starts with 1HD, it was assembled in the U.S. and qualifies.
Q: What about used motorcycles?
A: This benefit only applies to new motorcycles.
Q: How do I track the interest I paid?
A: Keep detailed records of your loan and any annual statements from your lender.
Q: What if I purchase in 2024?
A: The deduction only applies to loans originated on or after January 1, 2025.
Ready to Ride & Save?
Visit Smoky Mountain Harley-Davidson today to explore eligible Harley-Davidson® models and lock in financing for 2025. Take full advantage of this new tax incentive—and hit the road with confidence.
Important Note: This information is for general informational purposes only and does not constitute legal or tax advice. Customers should consult with a certified tax professional or financial advisor to determine eligibility based on individual circumstances.