New Federal Tax Deduction Available for Indian Motorcycles
A recently signed federal law brings great news for motorcycle and Powersports enthusiasts: Customers who finance a new Indian Motorcycle between January 1, 2025, and December 31, 2028, may be eligible to deduct up to $10,000 per year in interest paid on their vehicle loan.
This new tax benefit is designed to support consumers who choose to finance their vehicle and applies whether you itemize deductions or take the standard deduction.
Key Highlights
Eligible Vehicles
All new Indian Motorcycles
Must be used for personal use (not for business or commercial purposes)
All models sold in the U.S. qualify, as they are assembled domestically
Tax Benefit
Deduct up to $10,000 per year in interest paid on your loan
Applies to tax years 2025, 2026, 2027, and 2028
Available to both standard deduction and itemized deduction filers
Timing
Loan must be contracted between January 1, 2025, and December 31, 2028
This is not a rebate or discount at the time of sale—deductions are claimed when filing your annual tax return
Income Eligibility
Begins to phase out for individuals earning over $100,000
Phase-out begins at $200,000 for joint filers (based on Modified Adjusted Gross Income)
What This Means for Shoppers
This new deduction adds even more value for those choosing to finance a new Indian Motorcycle. It’s a unique opportunity to save on borrowing costs while enjoying a premium riding experience.
If you have questions about your eligibility, we recommend speaking with a qualified tax professional for guidance based on your individual situation.
Ready to explore your options? Contact us or visit our showroom—we’re happy to help you get started.