India, Jan. 2 -- The Internal Revenue Service has issued guidance on a new tax break for Americans buying new vehicles. Taxpayers who purchase cars assembled in the United States may be able to deduct up to $10,000 in interest on their car loans, starting with the 2025 tax year.

The deduction is temporary and applies to vehicles purchased through 2028, according to Forbes and Cleveland.com.

To be eligible, the car must be new and assembled in the United States. This includes passenger cars, SUVs, minivans, vans, pickup trucks, and motorcycles with a gross vehicle weight of less than 14,000 pounds.

Buyers can check the vehicle's assembly location using the Vehicle Identification Number (VIN). Cars with VINs starting with 1, 4, or 5 are ...