No Tax on Boat Loan Interest Act of 2026

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 7222 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 7222 To amend the Internal Revenue Code of 1986 to include watercraft as applicable passenger vehicles for purpose of deducting personal loan interest. _______________________________________________________________________ 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. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``No Tax on Boat Loan Interest Act of 2026''. SEC. 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