Save on Taxes When You Choose a U.S.-Assembled Kia from Battleground Kia

If you’re planning to finance a new vehicle in 2025 or beyond, there’s a major new tax benefit you should know about. The Vehicle Interest Deduction allows eligible buyers to deduct up to $10,000 in interest paid on an auto loan for qualifying new vehicles. It’s a powerful incentive, but not every car qualifies.

At Battleground Kia, we’re here to break it down for you. Keep reading to learn which Kia models qualify, what the deduction actually means, and how you can take full advantage of it.

What Is the Vehicle Interest Deduction?

This new federal tax benefit runs from 2025 through 2028. It was created to encourage the purchase of vehicles assembled in the United States by offering a substantial tax break on the interest paid when financing a new car.

To qualify, your vehicle must meet the following conditions:

• It must be a new 2025 model year or newer
• It must be financed with a loan—not leased or paid in full with cash
• It must be used for personal (not business) use
• Its final assembly must have occurred in the United States
• You must have a Modified Adjusted Gross Income (MAGI) under $100,000 if filing single or $200,000 if filing jointly (the deduction phases out above these thresholds)

Which Kia Models Qualify?

The key factor is where the vehicle was built. Only Kia models with final assembly in the U.S. qualify for the Vehicle Interest Deduction. Fortunately, several of Kia’s most popular and family-friendly models meet that requirement.

The Kia Telluride, Kia Carnival, Kia Seltos, and the 2023+ Kia Sportage are all assembled at Kia’s manufacturing facility in West Point, Georgia. That means they meet the final assembly rule and are eligible for the interest deduction—assuming all other personal criteria are also met.

So, if you’re considering financing one of these models in the coming year, you could benefit from up to $10,000 in deductible interest on your federal tax return.

How to Claim the Deduction

The process is fairly straightforward, but it’s important to stay organized:

1. When financing your vehicle, make sure you keep all your loan paperwork.
2. You’ll need to report the VIN (Vehicle Identification Number) when filing your taxes.
3. Keep track of your interest payments throughout the year.
4. Work with a qualified tax advisor to ensure your MAGI falls within the eligible range and to properly claim the deduction.

Why It Matters

The Vehicle Interest Deduction is more than just a tax perk, it’s a smart way to make your next vehicle purchase work even harder for your budget. With Kia models like the Telluride and Carnival already offering incredible space, technology, and long-term value, this deduction adds a meaningful financial incentive for qualified buyers.

Explore Qualifying Kias at Battleground Kia

At Battleground Kia in Greensboro, our team is here to help you find the right vehicle, confirm eligibility, and guide you through the financing process. If you’ve had your eye on a U.S.-assembled Kia, now is the perfect time to make your move—and save in the process.

Stop by our showroom or browse our inventory online to find your next ride. Have questions about which vehicles qualify or how to apply the deduction? We’ve got answers.

Let’s make sure your next Kia comes with both confidence and a tax break.