The 2025 Top Picks list from Consumer Reports identifies four US-built vehicles that qualify for a $10,000 tax credit on loan interest. The BMW X5, Tesla Model Y, Toyota Camry, and Toyota Highlander Hybrid are built in the US and eligible for the deduction, which is “above the line” and can be used in addition to the standard deduction.
On the other hand, six imported models may face tariffs, but buyers will still be able to claim the tax credit on their loan interest. The CR members’ picks list highlights American-made alternatives to these imported models, ensuring access to high-scoring vehicles while minimizing import costs.
To find a car’s assembly location, consumers can look at its window sticker or driver’s doorjamb for the vehicle identification number (VIN). Decoding the VIN is an easy trick for checking dealership inventory online. The 2025 Top Picks list provides detailed information on pricing, ratings, and more, available exclusively to CR members.
Source: https://www.consumerreports.org/cars/buying-a-car/best-cars-that-earn-tax-credits-and-may-avoid-tariffs-a7125719004