A US-built street motorcycle can qualify for the vehicle loan interest deduction. A towable camper almost never does. Most motorhomes sit in between, and that gray zone is where powersports and RV lenders are getting stuck. Here's what qualifies, what doesn't, and how to file the loans you're sure about.
- Street motorcycles can qualify if they're new, US-assembled, and bought for personal use.
- Towables, ATVs, UTVs, and dirt bikes don't qualify. They're not on the list or not built for the road.
- Large motorhomes don't qualify. Van-based Class B campers are a maybe, and the IRS hasn't settled it.
- Assembly location decides it, not the brand. Always check the VIN.
If you finance powersports or RVs, this is the part of the new law almost nobody has mapped yet. The rules were written around cars, so two-wheelers and campers land in the fine print. I set up 1098-VLI reporting for lenders, and the IRS guidance on the car loan interest deduction gives us enough to sort most of it out. Below is what qualifies, what doesn't, and what to do with the loans that sit on the line.
What counts as a specified passenger vehicle loan
The deduction runs on a defined term. A specified passenger vehicle loan, or SPVL, is debt a borrower takes on after December 31, 2024. It pays for a qualifying vehicle bought for personal use, secured by a first lien on that vehicle.
The vehicle it pays for is an applicable passenger vehicle, and that's where the limits live. It has to clear five tests at once.
- Vehicle type. It has to be a car, minivan, van, SUV, pickup truck, or motorcycle. Those six are the whole list.
- Built for the road. The maker has to build it mainly for use on public streets, roads, and highways.
- Weight. Its gross vehicle weight rating has to come in under 14,000 pounds.
- New. Its original use has to start with the borrower. Used purchases don't qualify.
- US final assembly. Final assembly has to happen in the United States.
Miss one test and the loan drops out. The interest also has to run $600 or more before you owe a form. The Form 1098-VLI overview covers the borrower-side pieces like the income phase-out and the $10,000 cap.
Motorcycles can qualify, with two big filters
Motorcycles are on the list by name, so a two-wheeler starts out eligible in a way an RV never does. The catch is that two of the five tests knock out a large share of the bikes on the lot.
The first filter is the road test. The law covers vehicles built mainly for public streets, so a street-legal motorcycle counts. A dirt bike or a track-only race bike doesn't.
The second filter is US final assembly, and it's the one that surprises people. Where a bike was assembled decides it. The brand's home country doesn't matter.
- Harley-Davidson Touring and Trike models come off the line in York, Pennsylvania, so they can clear the assembly test.
- Harley's Revolution Max bikes (Pan America, Sportster S, and Nightster) were assembled overseas for the 2025 and 2026 model years. US assembly is planned around 2027, so they don't qualify until then.
- Indian Motorcycle builds in Spirit Lake, Iowa, so those bikes can clear it too.
- Popular imports from Honda, Yamaha, Kawasaki, Suzuki, BMW, Ducati, and Triumph are usually assembled outside the United States. That keeps them out, however well they sell.
The badge won't tell you. Run the VIN before you trust a bike. The VIN check for the deduction shows how to confirm the assembly plant. A bike that passes still needs a 2025-or-later loan and personal use to count.
RVs divide into motorized and towable
RVs are the messier half, and the answer runs along how each rig is built. Start with the two easy calls.
A towable unit never qualifies on its own. A travel trailer, fifth wheel, or pop-up camper has no motor and isn't one of the six vehicle types. The loan on the living quarters falls outside the rule.
A large Class A motorhome fails from the other direction. It's not a car, van, SUV, pickup, or motorcycle, and it usually blows past the 14,000-pound ceiling.
The live question is the van-based rig. A Class B camper van, and some smaller Class C units, sit on a van or cutaway chassis under 14,000 pounds. If the IRS treats that chassis as a van, a new, US-assembled unit could qualify. For now, treat it as a maybe.
| RV type | Likely treatment | Why |
|---|---|---|
| Travel trailer, fifth wheel, pop-up | Does not qualify | No motor and not a listed vehicle type |
| Class A motorhome | Does not qualify | Not a listed type, usually over 14,000 pounds |
| Class C motorhome | Usually does not qualify | Often over the weight limit and hard to call a "van" |
| Class B camper van | Possible, unsettled | Van chassis under 14,000 pounds, if new and US-assembled |
For any van-based unit, the same VIN and assembly checks apply. Confirm the weight rating and the assembly plant before you put the loan on a Form 1098-VLI.
ATVs, UTVs, and camper trailers stay out
A few off-road machines get lumped in with powersports, so it's worth saying plainly. ATVs and UTVs don't qualify.
They fail the road test, because they're built for trails and job sites instead of public highways. They aren't on the six-type list either. You may see a stray article claim ATVs made the cut. They didn't. Lean on the statutory list over a dealer blog when your borrower asks.
Camper trailers land with the other towables. The trailer has no motor and isn't a listed vehicle, so its financing sits outside the deduction. A borrower who tows a camper behind a qualifying US-built pickup can still count the pickup loan. The trailer stays out.
What specialty lenders should do while guidance is thin
The IRS hasn't published a specialty-vehicle rulebook yet, so you're working from the statute and the early guidance. That's enough to act on the clear cases and to protect yourself on the rest. Sort your portfolio into three buckets.
The which cars qualify guide covers the separate business-use questions, so keep the two topics straight when your borrower asks.
Common questions about motorcycle and RV loan interest
Does my Harley-Davidson loan qualify?
It depends on the model and your loan. Touring and Trike models are assembled in York, Pennsylvania, so a new one bought for personal use with a 2025-or-later loan can qualify. The Revolution Max bikes (Pan America, Sportster S, Nightster) were built overseas for 2025 and 2026, so those don't qualify yet. Check your VIN to confirm the assembly plant before you count on it.
Does my Class A motorhome count as a passenger vehicle?
No. A Class A motorhome isn't a car, van, SUV, pickup, or motorcycle, and it almost always weighs more than the 14,000-pound limit. Both facts keep it out. The interest on a Class A loan isn't deductible under this rule, even if you live in the rig full time.
Do towable travel trailers or campers qualify?
No. A travel trailer, fifth wheel, or pop-up has no motor and isn't a listed vehicle type. The loan on it falls outside the deduction. If you financed the camper and a qualifying tow vehicle together, only the tow-vehicle portion can count. That truck still has to meet every test.
What about a dirt bike or an ATV?
Neither qualifies. A dirt bike is built for off-road use, so it fails the road test even with two wheels. ATVs and UTVs fail the same test and aren't on the six-type list. Street-legal motorcycles are the only two-wheelers the rule reaches.
When the rules aren't clear, ask before you file
The specialty-vehicle cases are new, and a wrong call cuts both ways. Skip a qualifying street-motorcycle borrower and you short them a real deduction. File on a towable that never qualified and you hand the IRS a mismatch to chase. File the loans you're sure about, and get a second read on the rest.
