Boat Loan Interest Deduction Act of 2026

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9537 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 9537

To amend the Internal Revenue Code of 1986 to allow a deduction for
loan interest payments made with respect to certain watercraft.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 30, 2026

Mr. Yakym (for himself and Mr. Davis of North Carolina) introduced the
following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to allow a deduction for
loan interest payments made with respect to certain watercraft.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Boat Loan Interest Deduction Act of
2026''.

SEC. 2. QUALIFIED PASSENGER VEHICLES INCLUDE CERTAIN WATERCRAFT FOR
PURPOSES OF DEDUCTION FOR INTEREST PAID OR ACCRUED.

(a) In General.--Section 163(h)(4)(D) of the Internal Revenue Code
of 1986 is amended to read as follows:
``(D) Applicable passenger vehicle.--For purposes
of this paragraph--
``(i) In general.--The term `applicable
passenger vehicle' means an applicable motor
vehicle or an applicable watercraft.
``(ii) Applicable motor vehicle.--The term
`applicable motor vehicle' means any vehicle--
``(I) the original use of which
commences with the taxpayer,
``(II) which is manufactured
primarily for use on public streets,
roads, and highways (not including a
vehicle operated exclusively on a rail
or rails),
``(III) which has at least 2
wheels,
``(IV) which is a car, minivan,
van, sport utility vehicle, pickup
truck, or motorcycle,
``(V) which is treated as a motor
vehicle for purposes of title II of the
Clean Air Act, and
``(VI) which has a gross vehicle
weight rating of less than 14,000
pounds.
Such term shall not include any vehicle the
final assembly of which did not occur within
the United States.
``(iii) Applicable watercraft.--The term
`applicable watercraft' means a watercraft--
``(I) the original use of which
commences with the taxpayer,
``(II) which is a recreational
vessel (as defined in section 2101 of
title 46, United States Code), and
``(III) which is a motorboat (as
defined in section 90.10-23 of title
46, Code of Federal Regulations, as in
effect on the date of the enactment of
this subparagraph).
Such term shall not include any watercraft the
final assembly of which did not occur in the
United States.''.
(b) Conforming Amendments.--Such Code is further amended--
(1) in section 163(h)(4)(B)(iii)--
(A) by striking ``VIN'' in the heading and
inserting ``Identification number'', and
(B) by striking ``the vehicle identification number
of the applicable passenger vehicle described in clause
(i) on the return of tax for the taxable year.'' and
inserting ``on the return of tax for the taxable year--
``(I) the vehicle identification number in
the case of an applicable motor vehicle, or
``(J) the hull identification number in the
case of an applicable watercraft.'', and
(2) in section 6050AA(b)(2)(E), by striking ``vehicle
identification number'' and inserting ``vehicle or hull
identification number''.
(c) Effective Date.--The amendments made by this section shall
apply to indebtedness incurred after December 31, 2025.
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