Tax Credits for American-Made Motorcycle Purchases
In the United States, the MRF reports that when Donald Trump's 'Big Beautiful Bill' finally made it through all its legislative stages, from the motorcycle industry's perspective, it did so with one very important provision still intact.
Anyone buying a new motorcycle made or assembled in the United States can treat any interest paid on the finance as a tax-deductible.
Here are some important points to note. The deduction has a cap of $10,000 and the benefit phases out based on increasing income levels. The change creates an "above-the-line" deduction for vehicle loan interest, meaning it reduces the adjusted gross income before calculating the taxable income.
The position of the deduction is important because it will be available to most taxpayers, even those who do not itemize deductions. The bill states that vehicles impacted must be "manufactured primarily for use on public streets, roads, and highways" and are "a car, minivan, van, sport utility vehicle, pickup truck, or motorcycle." This policy is temporary, with an expiration in 2028, but the MRF recommends that if you or one of your customers or anyone you know is in the market for a new bike over the next three years, they should be sure to do some research to see if this new policy will benefit them.
At the time of writing, some of the American Made/Assembled full production motorcycles reporting 2025 production that the MRF says it could apply to include (but not necessarily limited to) Buell Motorcycles, Harley-Davidson, Indian Motorcycles and Zero Motorcycles.
Some of the Bespoke/ Boutique/ Limited Production Motorcycles that it could apply to include ARCH Motorcycle, Boss Hoss Cycles, Cleveland CycleWerks, Combat Motors Motorcycles, Curtiss Motorcycles, Janus Motorcycles and Lightning Motorcycles.
