Your new BMW car accelerates from zero to 60 while you save up to $10,000 annually on loan interest. The One Big Beautiful Bill Act creates meaningful tax savings for drivers who purchase qualifying vehicles with final assembly in the USA. At BMW of Silver Spring, we’re breaking down which BMW models qualify and what you need to know about this benefit through 2028.
Understanding OBBBA Tax Deduction Requirements
The OBBBA allows you to deduct up to $10,000 per year in interest paid on qualifying vehicle loans. Your BMW model must meet specific criteria to qualify for this above-the-line deduction. The vehicle needs:
- Final assembly in the United States.
- Personal use designation.
- A first lien loan originated after December 31, 2024.
- Your Vehicle Identification Number must begin with one, four, or five, indicating domestic assembly.
Income limits apply to this deduction. Single filers earning over $100,000 and joint filers earning over $200,000 see a gradual phase-out. However, you don’t need to itemize to claim this benefit, making it accessible for most taxpayers.
Which BMW Models Qualify for Tax Savings
Six BMW Sports Activity Vehicles have final assembly at the Spartanburg, South Carolina, plant, the largest BMW Group plant in the world, assembling over 1,500 vehicles daily. and qualify for OBBBA tax benefits. These are the models that qualify as of late 2025; because manufacturing can shift, speak to your BMW dealer for further details.
- BMW X3
- BMW X4
- BMW X5
- BMW X6
- BMW X7
- BMW XM
As long as it meets the other requirements, your new BMW car qualifies regardless of powertrain configuration. This flexibility ensures your preferred BMW delivers both performance excellence and tax advantages.
Experience Tax-Smart Luxury at BMW of Silver Spring
Contact our team at BMW of Silver Spring to learn how much you could save with a qualifying new BMW car. Our specialists walk you through OBBBA requirements to help you identify which BMW models maximize your tax benefits. Explore our inventory of qualifying vehicles today.