Police Interceptor Loan Interest Tax Calculator
Enter the interest figure from your annual loan statement. The estimate applies the same Schedule 1-A math as your federal return — no tax software, no signup.
The short answer: A detective buying an Interceptor — at the scenario numbers pre-loaded below, the OBBBA deduction is $1,300, worth about $156 in federal income tax at a 12% marginal rate ($6 per biweekly paycheck). Exact figures update live as you change the inputs.
New, US-assembled vehicle only
Modified Adjusted Gross Income
Car Loan Interest Deduction
$1,300
✅ You qualify for the full deduction
⚠️ This calculator provides estimates for informational and educational purposes only. It is not tax advice. Results are based on the One Big Beautiful Bill Act (OBBBA) and IRS Schedule 1-A. Consult a qualified tax professional for your specific situation.
Qualification Rules That Decide It
Interceptor Utilities are Chicago-built, so the vehicle passes the assembly test even on the used market. Take-home-program officers buying their assigned vehicle get the same treatment — the sale is private but the loan from a bank secured by the truck qualifies. Equipment package and upfit costs are not interest and do not count.
The full rules, caps and phase-outs for every deduction are in one table on the OBBBA rules page.
Worked Example
A detective bought a decommissioned Interceptor Utility, Chicago-assembled, paying about $1,300 a year in interest.
- • Deductible amount: $1,300
- • Federal income tax savings: $156 (at the 12% marginal rate)
- • Per biweekly paycheck: $6
That repeats every year of the loan — interest deducts annually, which is why the loan-vs-lease math changed under OBBBA.
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Frequently Asked Questions
Do decommissioned police vehicles qualify?
Yes, if assembled in the US and financed with a vehicle-secured loan signed after enactment. Prior government ownership does not disqualify the vehicle or the loan.
Do I need to itemize deductions to claim the car loan interest deduction?
No. Like the other OBBBA deductions, vehicle loan interest is an above-the-line adjustment on Schedule 1-A — it stacks on top of the standard deduction.