MRAA Advocacy Update: New bill addressing boat loan interest deduction will help make boat ownership more affordable for everyday Americans
WASHINGTON (July 14, 2026) — The Boat Loan Interest Deduction Act of 2026, recently introduced by Representatives Rudy Yakym (R-IN) and Don Davis (D-NC), would allow taxpayers to deduct interest paid on qualifying recreational boat loans, helping more Americans achieve the dream of boat ownership and spending time on the water. The legislation aims to reduce financing costs for boat buyers, helping get more Americans on the water, while simultaneously supporting our nation’s recreational boating industry.
Proposed Tax Deduction Could Lower Cost of Boat Ownership
If enacted, the Boat Loan Interest Deduction Act of 2026 would allow taxpayers to deduct up to $10,000 annually in interest paid on qualified recreational watercraft loans through 2028. The deduction would phase out for individuals with modified adjusted gross incomes above $100,000 and for joint filers above $200,000. Eligible vessels must be recreational motorboats assembled in the United States, and taxpayers must provide the boat’s hull identification number on their return.
With more than 12 million registered recreational boats across the country, the bill has direct implications for affordability, access and the marine businesses that rely on consistent consumer demand. The recreational boating industry supports more than 36,000 businesses and 800,000 jobs nationwide. The MRAA will continue monitoring the legislation and evaluating its potential impact on marine retailers and the customers they serve.
“The provisions put forth in this bill will expand the ‘No Tax on Car Loan Interest’ provision included in the recently passed One Big Beautiful Bill Act to American-made recreational boats,” said Matt Gruhn, MRAA President. “This change will provide needed relief to hardworking Americans who support our nation’s recreational boating industry by allowing them to deduct interest paid on loans used to buy American-made watercraft. With the majority of boat owners in America making less than $100,000 a year, this bill stands to significantly benefit working-class Americans and help encourage more folks to get on the water to the benefit of their health and the recreational boating industry at large. The MRAA applauds the leadership of Representative Yakym and Davis for introducing the Boat Loan Interest Deduction Act of 2026, which will provide needed relief to American families who wish to invest in an American-made boat.”
Additional Industry Leader Voices
Collectively, industry leaders express broad support for the bill as a critical step toward expanding access to boating while strengthening demand and stability across the recreational marine industry.
Michael J. Stodolak, President, National Marine Lenders Association (NMLA)
“We support the advancement of HR 9532 and the amendment to the Internal Revenue Code of 1986 to include watercraft. By enabling buyers of American-made boats to deduct interest paid on their boat loans, this legislation will make boat ownership more accessible for hardworking families. Additionally, it will provide a boost to American marine manufacturers, retailers, and lenders who help make recreational boating possible. We appreciate Representative Yakym’s and Davis’s leadership in championing support for both consumers and the boating industry.”
Frank Hugelmeyer, President and CEO of National Marine Manufacturers Association (NMMA)
“The bipartisan Boat Loan Interest Deduction Act recognizes recreational boating as a uniquely American industry that supports thousands of small businesses, strengthens domestic manufacturing, and creates jobs in communities across the country. With 95 percent of boats sold in the U.S. built here at home — and 93 percent of boat builders classified as small businesses — this commonsense legislation will help make boating more affordable and accessible for American families. As our nation celebrates its 250th anniversary, this bill will help more Americans experience the freedom and traditions of spending time on our waterways. We thank Representatives Yakym and Don Davis for their bipartisan commitment to ensuring more Americans can access and enjoy our nation’s waterways.”
David Kennedy, Manager of Government Affairs, Boat Owners Association of the United States (BoatUS)
“A boat is often a family’s single biggest investment in outdoor recreation, bringing together multiple generations on the water. And for many, a boat is their primary means of getting to work and school. Treating boat loan interest in the same manner as cars and recreational vehicles is sound tax policy. On behalf of our over 740,000 members nationwide, including some 20,000 in South Carolina, we applaud Representatives Yakym and Davis for bringing this proposal forward.”
Stay Informed on Boating Policy and Industry Updates
To learn more about the Boat Loan Interest Deduction Act of 2026 and review full bill details, read the official press release from the office of Congressman Yakym. The MRAA will continue to provide updates on federal legislation impacting marine retailers, recreational boat taxes and boating access. For more information, contact Chad Tokowicz at chad@mraa.com.
About the Marine Retailers Association of the Americas (MRAA)
The Marine Retailers Association of the Americas is the trusted catalyst for success in the marine retail industry. Dedicated to fueling dealer growth and strengthening the boating experience, MRAA delivers industry-leading insights, expert guidance and proven solutions that assist marine retailers in navigating challenges and seizing opportunities. Through education, advocacy and innovative resources, MRAA empowers dealers to thrive, and help drive a stronger more sustainable marine industry. Learn more at MRAA.com.