No Tax on Boat Loan Interest Act of 2026

The No Tax on Boat Loan Interest Act of 2026 would allow individuals to deduct interest paid on loans for qualifying U.S.-manufactured recreational motorboats from their taxable income, similar to how interest on car loans is treated. It defines qualifying boats as motorboats manufactured in the U.S. for recreational use, excluding non-U.S. built vessels, and requires taxpayers to provide the boat's hull identification number on their tax return. This change applies to loans taken out after December 31, 2024, and primarily affects individual boat owners who finance purchases meeting these criteria.