No Tax on Boat Loan Interest Act of 2026

# No Tax on Boat Loan Interest Act of 2026 - Summary **What the Bill Would Do:** This bill would allow individuals to deduct interest paid on boat loans from their federal income taxes, similar to how homeowners can deduct mortgage interest. Currently, interest on most boat loans is not tax-deductible for individual borrowers. If passed, people who take out loans to purchase boats could reduce their taxable income by the amount of interest they pay, potentially lowering their overall tax bills. **Who It Affects:** The primary beneficiaries would be boat owners who finance their purchases through loans.

This would mainly affect middle to higher-income individuals, as boat ownership is not widespread across all income levels. The federal government could lose tax revenue if many people take advantage of this deduction. **Current Status:** As of now, the bill (HR 7222) has been introduced by Representative Nancy Mace (R-SC) but remains in committee and has not advanced to a full House vote. It has not yet become law.