No Tax on Boat Loan Interest
Official: No Tax on Boat Loan Interest Act of 2026
IntroducedJanuary 22, 2026
Why This Matters
This bill lets people deduct interest on loans for boats, making it easier for boat owners to manage their finances. It treats boats like cars for tax deductions, which could help more people afford recreational watercraft.
If you own a boat and take out a loan, you could save money on your taxes by deducting the interest.
Affects: Boat owners who take out loans to purchase their vessels.
What changes is this bill making?
1. This bill allows people to deduct interest on loans for boats from their taxes. 2. It defines boats as applicable watercraft for tax purposes. 3. The change applies to loans taken out after December 31, 2024. 4. Taxpayers must provide a hull identification number for their boat loans. 5. This bill aims to treat boat loans similarly to car loans regarding tax deductions.
Who is affected?
Boat owners who take out loans to purchase their vessels.