Boat Loan Interest Deduction Act of 2026
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
This bill amends the Internal Revenue Code to allow taxpayers to deduct interest paid on loans used to purchase certain watercraft, such as recreational vessels and motorboats. It expands the definition of ‘applicable passenger vehicle’ to include watercraft, aligning it with the existing definition for motor vehicles. The changes would allow boat owners to claim this deduction on their tax returns.
Key provisions
- Allows a deduction for loan interest payments on qualifying watercraft.
- Expands the definition of ‘applicable passenger vehicle’ to include watercraft.
- Defines ‘applicable watercraft’ as a recreational vessel and motorboat.
- Requires the use of either a vehicle identification number (for motor vehicles) or a hull identification number (for watercraft) on tax returns.
- Specifies that the watercraft must be used by the taxpayer.
- The final assembly of the watercraft must occur in the United States.
- The deduction applies to indebtedness incurred after December 31, 2025.
Who is affected
- Taxpayers
- Boat owners
- Individuals who own recreational vessels and motorboats
Notable changes
- Introduces a deduction for boat loan interest.
- Modifies the definition of ‘applicable passenger vehicle’ to include watercraft.
Bill text
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Sponsors
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4 on record
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