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Which years does it cover?
This is a temporary deduction with a hard expiration date.
- Applies to tax years 2025, 2026, 2027, and 2028. IRS
- Retroactive to January 1, 2025 — interest on qualifying loans from the start of 2025 counts, even though the law was signed in July 2025. Thomson Reuters
- Sunsets after 2028 (no deduction for tax years beginning Jan 1, 2029 or later) unless Congress extends it. proposed reg
Because it’s time-limited, the deduction is most valuable in the early years of a loan, when interest is highest. A loan taken late in 2028 yields little deductible interest before the window closes.