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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