Boat Loan Interest Deduction Act of 2026

Bill Number

H.R. 9537

Origin Chamber

House

Congress

119th Congress, Session 2

Status

Introduced

Latest Action

2026-06-30: Referred to the House Committee on Ways and Means.

Last Updated

2026-07-06T13:38:29Z

AI-Generated Summary

Summary of H.R. 9537: Boat Loan Interest Deduction Act of 2026

Purpose

The legislation amends the Internal Revenue Code to permit a tax deduction for interest paid on loans for certain new recreational watercraft, extending an existing deduction previously limited to specific motor vehicles.

Key Provisions

• Definition Expansion: Adds "applicable watercraft" to the term "applicable passenger vehicle" under section 163(h)(4)(D).
• An applicable watercraft must be new to the taxpayer, classified as a recreational vessel, and meet the definition of a motorboat.
• Final assembly must occur in the United States.
• Reporting Requirements: Updates tax return filings to include the hull identification number for watercraft (instead of a vehicle identification number).
• Effective Date: Applies to loans incurred after December 31, 2025.

Significant Changes to Existing Law

• Broadens eligibility for the interest deduction from motor vehicles (cars, trucks, motorcycles, etc.) to include qualifying boats.
• Introduces parallel rules for watercraft, including U.S. assembly requirements and hull identification tracking.
• Makes minor conforming updates to related Code sections on reporting and identification.

Potential Impacts

• Individuals purchasing eligible watercraft may reduce their taxable income through loan interest deductions.
• Could increase demand for U.S.-assembled recreational boats.
• The Internal Revenue Service would administer expanded deduction claims and updated reporting.
• No direct effects on international relations are specified.

Main Stakeholders

• Taxpayers acquiring qualifying watercraft.
• Domestic manufacturers and assemblers of recreational motorboats.
• The Internal Revenue Service, responsible for processing claims and enforcing rules.

Notable Implications

• Represents a tax code modification within Congress's authority to set deductions.
• Focuses on supporting U.S. manufacturing through assembly location rules.
• No constitutional or legal conflicts are evident in the bill text.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Yakym, Rudy [R-IN-2]

Cosponsors (1)

Rep. Davis, Donald G. [D-NC-1]

Recent Actions

• 2026-06-30: Referred to the House Committee on Ways and Means.
• 2026-06-30: Introduced in House
• 2026-06-30: Introduced in House

Bill Versions

• Boat Loan Interest Deduction Act of 2026 — issued 2026-06-30 — PDF (4 pages)