H.R. 7222

119 HR 7222 IH: No Tax on Boat Loan Interest Act of 2026
 U.S. House of Representatives
 2026-01-22
 text/xml
 EN
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 I  119th CONGRESS  2d Session  H. R. 7222  IN THE HOUSE OF REPRESENTATIVES   January 22, 2026   Ms. Mace  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 include watercraft as applicable passenger vehicles for purpose of deducting personal loan interest.
1.
Short title
This Act may be cited as the   No Tax on Boat Loan Interest Act of 2026  .
2.
No tax on boat interest
(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
(i)
In general
For purposes of this paragraph, the term  applicable passenger vehicle  means an applicable motor vehicle or an applicable watercraft.
(ii)
Applicable motor vehicle
For purposes of this subparagraph. 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
For purposes of this subparagraph, 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 such term is 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 vessel the final assembly of which did not occur in the United States.
 .
(b)
Hull identification number required
Section 163(h)(4)(iii) of such Code is amended by striking  the vehicle  and all that follows through the end of the sentence and inserting  on the return of tax for the taxable year the vehicle identification number (in the case of an applicable motor vehicle) or the hull identification number (in the case of an applicable watercraft). .
(c)
Conforming amendment
Section 6050AA(b)(2)(E) of such Code is amended by inserting  or hull  after vehicle.
(d)
Effective date
The amendments made by this section shall apply to indebtedness incurred after December 31, 2024.