Bill · H.R. 7222· House(119-HR-7222)
No Tax on Boat Loan Interest Act of 2026
- Introduced
- 1/22/2026
- Last activity
- 1/22/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Nancy Mace
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
This bill, titled the "No Tax on Boat Loan Interest Act of 2026," seeks to amend the Internal Revenue Code of 1986. It aims to include watercraft under the definition of "applicable passenger vehicles" for the purpose of deducting personal loan interest. To qualify, the watercraft must be a recreational vessel and a motorboat. Furthermore, the final assembly of the watercraft must occur within the United States. The changes would apply to debt incurred after December 31, 2024.
Yes· 3 of 4
Would high-income households be better off under this?+3
The tax deduction for recreational motorboats primarily benefits higher-income individuals who can afford such watercraft.
Does this cut taxes for middle-income families?+3
The bill allows for the deduction of interest on loans for qualifying recreational motorboats.
Would business owners be better off under this?+2
The requirement for domestic assembly provides a benefit to U.S.-based boat manufacturers.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Interest Deductions for Watercraft Owners: Individuals who purchase a qualifying watercraft may be able to deduct the interest on their personal loans. This applies to watercraft that are recreational vessels and motorboats where the original use commences with the taxpayer (Section 2(a)(iii)).
-
Support for Domestic Manufacturing: The bill requires that the final assembly of the watercraft must occur within the United States to qualify for the deduction (Section 2(a)(iii)).
Potential Negative Impacts for People
-
Restrictions on Non-Domestic Watercraft: Individuals who purchase a watercraft that was not finally assembled in the United States will not be able to use this provision to deduct interest (Section 2(a)(iii)).
-
Specific Requirements for Watercraft Type: The tax benefit is limited only to certain types of watercraft; it must be a recreational vessel and a motorboat (Section 2(a)(iii)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For High Income Households+3Good For Business Owners+2
- Economy And Finance
- Reduces Middle Class Taxes+3Improves Economic Growth+2
- 2/20/2026
- 1 Cosponsor added.
- 1/22/2026
- Referred to the House Committee on Ways and Means.
- Introduced in House
W. SteubeRepublican · Florida