Buying A Harley-Davidson? You Could Get A $10,000 Tax Deduction

Starting in 2025, American riders have a unique chance to pair a new Harley-Davidson with a major financial perk. A new federal law allows qualified buyers to deduct up to $10,000 each year in interest paid on loans for new, U.S.-assembled motorcycles. The benefit applies to loans originated between January 1, 2025, and December 31, 2028, covering tax years through 2028. Unlike many deductions, this one works whether you itemize or take the standard deduction, opening it to a wide range of taxpayers.

Eligibility depends on income caps. For individuals, the deduction begins phasing out at $100,000 of modified adjusted gross income (MAGI) and ends at $150,000. For married couples filing jointly, the phase-out runs from $200,000 to $250,000. It's also strictly limited to personal-use motorcycles, so businesses and commercial buyers won't qualify. Pre-owned models are excluded as well; only new Harleys count, and only if they're assembled in the U.S.

For riders planning a purchase in the next few years (in which case, here are the best Harleys ever made for your consideration), this incentive is a straightforward way to offset financing costs, but the deduction only applies if you keep records of your loan and interest payments when it's time to file.

Not every Harley makes the cut, so buyers will want to confirm before signing paperwork. Harley-Davidson has manufacturing facilities all around the world, but this tax break only applies to U.S.-made models. The simplest step is checking the VIN. If it starts with "1HD," the motorcycle was assembled in the U.S. and can qualify for the tax break. Revolution Max models (which use VINs beginning with "MLY") don't qualify, regardless of where they're sold.

Among eligible models, Harley has spread the incentive across much of its lineup. On the Softail side, that includes bikes like the Low Rider ST, Breakout, Heritage Classic, and Street Bob. Touring options also qualify, from the Road Glide and Street Glide families to premium trims like the CVO Road Glide and CVO Street Glide. Even three-wheeled Harleys aren't left out, with the Road Glide 3 and Tri Glide Ultra included.

The deduction can be significant over the program's four-year run. With the maximum $10,000 annual interest deduction, riders who finance could reduce taxable income by up to $40,000 in total. That makes the program appealing even for those who don't itemize their deductions.

The process is straightforward. Buyers secure financing at a Harley-Davidson dealership, keep accurate loan and payment records, and then deduct the eligible interest on their federal tax return. Lenders will typically provide annual interest summaries, but consulting a tax professional ensures riders get the full benefit.

With most Harley-Davidsons assembled in the U.S., many riders are well-positioned to take advantage of this new law. For those planning to buy, the timing between 2025 and 2028 could make the difference between paying more out of pocket and enjoying meaningful tax savings.