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Get a Tax Break When You Finance a New Harley-Davidson® Motorcycle in 2025

Jul. 16 2025 News By Pocono Mountain Harley-Davidson

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Get a Tax Break When You Finance a New Harley-Davidson® Motorcycle in 2025

Thinking about financing a new Harley-Davidson®? There’s a new reason to ride: you may qualify for a federal tax deduction on the interest you pay when financing a new, U.S.-assembled Harley in 2025.

Under a new federal tax incentive, individuals can deduct up to $10,000 per year in loan interest on eligible new motorcycle purchases made for personal use. This applies to new Harley-Davidson motorcycles assembled in the United States, making Harley riders uniquely positioned to benefit.

This deduction is available for tax years 2025 through 2028, and it applies whether you itemize or take the standard deduction.

Because most Harley-Davidson motorcycles are engineered and assembled in the U.S., you may be able to ride away with both a new bike and real tax savings.

⚠️ Please consult a certified tax professional regarding your individual eligibility. This page is for general informational purposes only and does not constitute tax or legal advice.

Frequently Asked Questions About the New Motorcycle Loan Tax Deduction

What is the federal tax deduction for motorcycle loans?
It’s a new law that allows eligible riders to deduct up to $10,000 annually in interest paid on financing for a new U.S.-assembled motorcycle.

Does this apply to Harley-Davidson motorcycles?
Yes! Most Harley-Davidson models are assembled in the U.S., and many will qualify. Look for a VIN starting with 1HD.

Is this a cash rebate at the time of purchase?
No. The tax deduction is applied when you file your tax return. It helps reduce your taxable income—not the price at the dealership.

When can I take advantage of this tax break?
The deduction applies to new Harley-Davidson motorcycles financed between January 1, 2025, and December 31, 2028. The loan must be originated during that window.

What are the income limits for this motorcycle tax deduction?
The deduction begins to phase out if your modified adjusted gross income exceeds:

  • $100,000 for individual filers

  • $200,000 for married couples filing jointly

Can I still qualify if I take the standard deduction?
Yes! This deduction is available whether you itemize or take the standard deduction.

Is this tax benefit available for commercial or business use motorcycles?
No. It’s only for personally owned motorcycles used for non-commercial purposes.

Are pre-owned or used Harley-Davidson motorcycles eligible?
No. This deduction only applies to new motorcycles.

How do I track the interest I paid?
Keep your loan documents or request a year-end statement from your lender showing the interest paid.

Which Harley models are eligible?
Most 2025 Harley-Davidson motorcycles with a VIN starting in 1HD will qualify. Models with VINs beginning with MLY, such as some Revolution Max models, are not eligible.

How do I confirm my Harley is U.S.-assembled?
Check the VIN on the motorcycle’s frame, title, or registration. If it starts with 1HD, your Harley was assembled in the United States.

Ready to Ride?

Whether you're eyeing a 2025 Harley-Davidson Street Glide, Road Glide, or Softail, there’s never been a better time to finance your dream motorcycle.
Visit us today to explore financing options, check tax deduction eligibility, and start your journey on two wheels.