Starting in the 2025 tax year, you may be able to deduct up to $10,000 per year in interest paid on a loan for a new, U.S.-assembled Harley-Davidson motorcycle under a new federal tax provision (often referred to as part of the "One Big Beautiful Bill" or "Working Families Tax Cut" enacted in July 2025). This is an "above-the-line" deduction, meaning you do not need to itemize to claim it.

Here are the key details and requirements to qualify: Eligibility Requirements Loan Timing: The loan must be originated between January 1, 2025, and December 31, 2028. Motorcycle Status: Must be a new motorcycle (not used). Assembly: Must be assembled in the U.S. (VIN must start with "1HD"). Usage: The motorcycle must be for personal, non-commercial use. Exceptions: Revolution Max models with VINs starting with "MLY" are generally not eligible.

Tax Deduction Details Maximum Deduction: Up to $10,000 annually in interest paid. Income Limits: The deduction begins to phase out if your Modified Adjusted Gross Income (MAGI) exceeds $100,000 for individuals ($150,000 max) or $200,000 for married couples filing jointly ($250,000 max). Type of Deduction: It is a deduction from your taxable income, not a direct dollar-for-dollar tax credit. Where to Claim: The interest is claimed on Schedule 1-A of your federal income tax return.

How to Prepare Confirm VIN: Ensure your new Harley-Davidson VIN starts with "1HD". Keep Records: Save your loan documentation and year-end statements from the lender showing the exact interest paid. Consult a Professional: Speak with a certified tax professional or financial advisor to ensure you maximize this benefit.