Boat Loan Interest Deduction Act of 2026
Sponsored By: Representative Yakym, Rudy [R-IN-2]
Introduced
Summary
Would let certain U.S.-assembled recreational motorboats qualify for the same interest deduction that now applies to passenger vehicles. It would fold qualifying watercraft into the existing vehicle-interest framework while keeping the same origination and use rules for borrowers.
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- Buyers and households: Would allow taxpayers to deduct interest on loans for qualifying recreational motorboats if the boat’s original use is with the buyer and the final assembly occurred in the United States. This change applies to indebtedness incurred after December 31, 2025.
- U.S. manufacturers and workers: By requiring final assembly in the United States for a boat to qualify, the rule would favor domestically assembled watercraft and could influence where manufacturers finish production.
- Tax reporting and lenders: Tax returns and reporting would need hull identification numbers for qualifying watercraft. The law would update current forms and reporting rules to accept a “vehicle or hull identification number” instead of just a vehicle identification number.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Tax break for car and boat loans
You would be able to deduct interest on loans for a qualifying boat or a qualifying passenger vehicle. Boats must be recreational motorboats first used by you and finally assembled in the United States. Passenger vehicles must meet the existing rules, including first use by you, certain vehicle types, weight limits, and final assembly in the United States. If you claim the deduction, you would need to include the vehicle's VIN or the boat's hull identification number (HIN) on your tax return. These rules would apply to indebtedness incurred after December 31, 2025.
Sponsors & CoSponsors
Sponsor
Yakym, Rudy [R-IN-2]
IN • R
Cosponsors
Rep. Davis, Donald G. [D-NC-1]
NC • D
Sponsored 6/30/2026
Rep. Gimenez, Carlos A. [R-FL-28]
FL • R
Sponsored 7/22/2026
Rep. Patronis, Jimmy [R-FL-1]
FL • R
Sponsored 8/31/2026
Rep. Salazar, Maria Elvira [R-FL-27]
FL • R
Sponsored 9/1/2026
Rep. Grothman, Glenn [R-WI-6]
WI • R
Sponsored 9/8/2026
Rep. Burchett, Tim [R-TN-2]
TN • R
Sponsored 9/10/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov