Does the Hyundai Kona qualify for the car loan interest deduction?
The 2025–2028 deduction turns on where a vehicle is finally assembled — not the badge. Here's where the 2025–2026 Hyundai Kona is built and what it means for your loan interest.
Assembly data: NHTSA vPIC + our verified plant lists · Not tax advice · Methodology
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FAIL — assembled outside the USA
The Hyundai Kona does not qualify on the assembly test. Assembly is one of four gates — you also need a new vehicle, personal use, a 2025–2028 loan, and income under the phase-out.
The short answer
The Hyundai Kona — gas and electric — is built in Ulsan, South Korea, so it fails the OBBBA final-assembly-in-America test. Being new and personal-use doesn't help, because the crossover isn't US-assembled. For a US-built Hyundai, the Alabama-built Santa Fe or Santa Cruz are the ones to check.
Where the Hyundai Kona is assembled
The Hyundai Kona is imported for the US market — its final assembly point is outside the United States, so it fails the assembly test regardless of the brand.
Confirm the other three tests
A US-assembly result is only the first gate. Each remaining condition has its own guide:
New & personal-use — used cars and leases don't qualify→ Loan dated 2025–2028 — refinancing keeps eligibility→ Income under the phase-out — run the MAGI calculator→
Frequently asked questions
Is the Hyundai Kona made in America?
No. Both the gas Kona and the Kona Electric are assembled in Ulsan, South Korea, so neither meets the US final-assembly requirement.
Does the Kona Electric qualify since it's an EV?
No. The deduction turns on US assembly, not the powertrain, and the Kona is built in Korea, so it fails the assembly test.
Which Hyundais are US-built instead?
The Santa Fe and Santa Cruz (Montgomery, AL) are US-assembled. The Tucson is split between Alabama and Korea, so decode its VIN.
Advertiser disclosure
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A lower rate means less interest — and the qualifying interest is what's deductible. Compare partner lenders; checking won't affect your credit score.