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119-hr-7222119th CongressWALLET

No Tax on Boat Loan Interest Act of 2026

Sponsored By: Representative Mace, Nancy [R-SC-1]

Introduced

Summary

Expands the personal loan interest deduction to cover certain recreational motorboats. This bill would treat qualifying watercraft like eligible passenger vehicles for the personal loan interest deduction if they meet federal vessel and motorboat definitions and a U.S. final-assembly requirement.

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  • Families and boat buyers would be able to deduct interest on loans used to buy qualifying recreational motorboats that begin original use with the buyer and meet federal recreational vessel and motorboat definitions.
  • U.S. boat assemblers would benefit because a qualifying watercraft must have its final assembly in the United States.
  • Taxpayers and tax preparers would need to report hull identification numbers (HINs) on returns for qualifying boats, matching the vehicle identification number (VIN) rule for cars.
  • The change would apply to debt incurred after December 31, 2024.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Tax break for qualifying boat loans

This bill would let you deduct interest on indebtedness to buy a qualifying recreational motorboat for loans taken after December 31, 2024. The boat must be first used by you, be a recreational vessel under 46 U.S.C. 2101, be a motorboat under 46 C.F.R. 90.10-23 (as of enactment), and have final assembly in the United States. To claim the deduction you would need to put the boat's hull identification number (HIN) on your tax return for the year you claim the interest. That reporting requirement could create paperwork and might stop the deduction if the HIN is missing.

New HIN reporting for boat sellers

This bill would require sellers, lessors, and dealers who file section 6050AA information returns to include a boat's hull identification number (HIN) as well as vehicle VINs. The change would take effect on the same schedule as the deduction rules, applying to transactions tied to indebtedness incurred after December 31, 2024. The requirement is mainly an added paperwork and compliance duty for affected businesses.

Sponsors & CoSponsors

Sponsor

Mace, Nancy [R-SC-1]

SC • R

Cosponsors

  • Rep. Steube, W. Gregory [R-FL-17]

    FL • R

    Sponsored 2/20/2026

Roll Call Votes

No roll call votes available for this bill.

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