Harley-Davidson Tax Deduction | OBBBA Motorcycle Loan Interest

Finance a New American Legend. Deduct Up to $10,000 in Interest.

Ride Now, Save at Tax Time

Thanks to the federal One, Big, Beautiful Bill Act, your next new Harley-Davidson could clear the way for a massive tax break. If you finance a brand-new, U.S.-assembled Harley, you can now deduct up to $10,000 per year in loan interest directly from your federal taxes.

The best part? You don’t even need to itemize. This is an "above-the-line" deduction, which means you qualify for the full savings even if you plan to take the standard deduction.

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. Lenders will issue a Form 1098 (or similar) showing the interest paid.
At tax time, deduct the eligible interest you paid (up to $10,000).
Report the VIN of the motorcycle on your tax return when claiming the deduction.
The deduction applies even if you take the standard deduction.

To qualify for the deduction on interest paid:

Vehicle must be new - The original use must begin with you (used motorcycles do not qualify). Leases also do not qualify.
Final assembly in the United States — This is the key requirement. Harley-Davidson motorcycles sold in the U.S. are assembled in U.S. plants (primarily York, Pennsylvania, and facilities in Wisconsin). You can verify this on the vehicle’s information label or via the VIN (plant code) using the NHTSA VIN decoder.
Motorcycle qualifies as a “qualified vehicle” - It must be a motorcycle with a gross vehicle weight rating (GVWR) under 14,000 pounds. Motorcycles are explicitly included alongside cars, SUVs, trucks, etc.
Personal use only - Primarily for personal (not business or commercial) use.
Loan requirements - The loan must be originated after December 31, 2024, and used to purchase the vehicle. The loan should be secured by a lien on the motorcycle. Refinancing a qualifying loan generally preserves eligibility for the interest paid afterward.
Interest paid in the tax year - You can deduct up to $10,000 of qualified interest per year (no vehicle price cap, but the interest deduction is capped).

Your lender will issue a Form 1098 showing the interest you paid. You will enter this and your bike's VIN on your tax return.

No! This is an "above-the-line" deduction (reported on Schedule 1-A of your Form 1040). You get to claim your vehicle loan interest and take your full standard deduction. It’s a pure win-win.

For tax years 2026 and later, lenders are required to send you Form 1098-VLI (Vehicle Loan Interest Statement) by January 31st if you paid $600 or more in interest during the year. You will use the exact interest amount from that form and provide your Harley’s VIN when you file.

The model year doesn't matter; what matters is that the bike's original use begins with you. If you buy a brand-new, untitled leftover model from a previous year, it still counts as new and qualifies for the deduction, as long as it has a 1HD VIN and your loan was opened after December 31, 2024.

According to IRS guidelines, refinancing a qualifying loan generally preserves your eligibility for the interest deduction. As long as the new loan is still secured by the same motorcycle and doesn't exceed the original principal balance, you can keep deducting the interest you pay through 2028.

The One, Big, Beautiful Bill Act strictly mandates that the vehicle must undergo final assembly in the United States. Harley-Davidson’s Revolution Max models (like the Pan America, Nightster, and Sportster S) are built with VINs starting with "MLY" and do not meet this specific geographic assembly rule. Stick to our legendary Softail, Touring, and Trike lineups (1HD VINs) to secure your tax break.