Big Beautiful Bill Tax Credit

Here’s the simple version: with this bill, the interest you pay on your Cadillac loan can now count toward your car loan tax return. That means those monthly payments you’re already making don’t just disappear into thin air. Instead, they can lower your taxable income at the end of the year, potentially putting more money back in your pocket.

Think of it as another way to make financing a luxury vehicle like a Cadillac a little less stressful.

If you’re wondering, 'Do you get a tax credit for buying a car?'—the answer depends on a few factors.

So if you’re financing that new XT5, Escalade, or CT5, you could qualify for the deduction.

Here’s the good news: it’s straightforward. Your lender will provide an annual statement showing the amount of interest you paid on your auto loan. When it’s time to file your taxes, you or your tax professional will add that figure to your deductions. Just like with mortgage interest, it becomes part of your overall car loan tax return paperwork.

It’s always a good idea to consult with a tax professional, but the process itself is designed to be straightforward.

The new car tax credit in the Big Beautiful Bill applies to just about every new Cadillac. That means everything from the versatile XT4 to the luxurious Escalade is fair game. Whether you’re looking for a sophisticated sedan or a full-size SUV, this tax change works across the board.

Additionally, vehicles weighing less than 14,000 pounds and having their final assembly in the United States are also eligible.

This is where things get interesting. Let’s say you finance a $70,000 Escalade at an interest rate of 6%. In the first year, you could pay about $4,200 in interest. Deducting that from your taxable income could save you hundreds—or even more—depending on your tax bracket.

Throughout a multi-year loan, the total savings can easily accumulate to thousands of dollars. That’s not small change, and it makes the idea of financing a luxury vehicle even more attractive.

Here in Phoenix, driving isn’t optional—it’s a way of life. Between the daily commutes, weekend getaways, and family road trips, your vehicle does a lot of heavy lifting. The tax deduction news from the Big Beautiful Bill makes owning a new Cadillac not just a luxury, but a financially wise choice as well. It’s about enjoying the comfort, performance, and innovation of a Cadillac while knowing you’re making a decision that pays off when tax season comes around.

At Coulter Camelback Cadillac, we’re here to make sure you not only find the right vehicle but also understand the financial benefits that come with it. The Big Beautiful Bill car tax credit is one more reason why now might be the perfect time to get behind the wheel of a new Cadillac.