H.R. 9537

119 HR 9537 IH: Boat Loan Interest Deduction Act of 2026
 U.S. House of Representatives
 2026-06-30
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 I
 119th CONGRESS  2d Session
 H. R. 9537
 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.
1.
Short title
This Act may be cited as the   Boat Loan Interest Deduction Act of 2026  .
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.