Bill Introduced in U.S. House of Representatives to Reduce Taxes on Recreational Boats

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Following the implementation of the One Big Beautiful Bill - which allowed for a deduction on interest paid on loans for American-made vehicles - Rep. Mace's bill extends the provision to American-made recreational boats, noting that her bill "ensures American-made recreational boats are treated fairly under the tax code…"

"The No Tax on Boat Loan Interest Act recognizes the vital economic role recreational boating plays across American communities. With 95 percent of boats sold in the U.S. built here at home, and the vast majority by small businesses, this bill helps strengthen American manufacturing and protect good jobs," said Frank Hugelmeyer, President and CEO of NMMA. "At the same time, it makes boating more accessible to families facing rising costs and encourages time on the water for recreation. We thank Congresswoman Nancy Mace for her leadership and commitment to supporting a thriving, homegrown industry."

H.R.7222 provisions include:

· A maximum annual deduction is $10,000 per year;

· The deduction applies through 2028; and

· The deduction phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers).

Taxpayers must provide the hull identification number of their boat on their tax return.

To qualify, boats must be:

NMMA will continue working with Congress to ensure boating is more accessible to families. For more information, contact NMMA's Jacky Usyk, Vice President of Government Relations, at [email protected].