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Tax Credits For Purchases Of American Made Motorcycles

  • The recently passed H.R. 1 legislation signed by the President includes a provision that will directly benefit those who purchase new motorcycles made or assembled in the United States. Interest paid on loans for qualifying new motorcycle purchases will now be tax-deductible.

    Here are some important points to note. The deduction has a cap of $10,000 and the benefit phases out based on increasing income levels. The change creates an "above-the-line" deduction for vehicle loan interest, meaning it reduces your adjusted gross income before calculating your taxable income. The position of the deduction is important because it will be available to most taxpayers, even those who do not itemize deductions. The bill states that vehicles impacted must be “manufactured primarily for use on public streets, roads, and highways" and are "a car, minivan, van, sport utility vehicle, pickup truck, or motorcycle." This policy is temporary, with an expiration in 2028. If you are in the market for a new bike over the next three years, be sure to do some research to see if this new policy will benefit you.

    There are diverse policy issues and priorities addressed in this bill. As the voice of the street rider in Washington, D.C., the Motorcycle Riders Foundation applauds the inclusion of this tax provision. Policies that foster the growth of motorcycling while supporting American manufacturing are something we can stand behind.

    American Made/Assembled Motorcycles
    Reporting 2025 Production

    Full Production Motorcycles:
    Buell Motorcycles
    Harley Davidson Motorcycles
    Indian Motorcycles
    Zero Motorcycles

    Bespoke/Boutique/Limited Production Motorcycles:
    ARCH Motorcycle
    Boss Hoss Cycles
    Cleveland CycleWerks
    Combat Motors Motorcycles

    Curtiss Motorcycles
    Janus Motorcycles
    Lightning Motorcycles

    **Examples not intended as fully comprehensive list

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