• MRAA Advocacy update: New bill addressing boat loan interest deduction will make boat ownership more affordable for everyday Americans
WASHINGTON (Jan. 28, 2026) — The No Tax on Boat Loan Interest Act of 2026, recently introduced by Rep. Nancy Mace, proposes extending the above‑the‑line loan interest deduction available for American‑made motor vehicles to include American‑made recreational boats. The legislation aims to reduce financing costs for boat buyers, helping to get more Americans on the water, while simultaneously supporting our nations recreational boating industry.
If enacted, the No Tax on Boat Loan Interest 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 as a whole, supports more than 36,000 businesses and 800,000 jobs nationwide.
MRAA Perspective
MRAA will continue monitoring the legislation and evaluating its potential impact on marine retailers and the customers they serve.
“The MRAA applauds the leadership of Representative Mace for introducing the No Tax on Boat Loan Interest Act, which will provide needed relief to American families who wish to invest in an American-made boat,” said Matt Gruhn, MRAA President. “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. 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.”
Industry-wide Support
- Michael J. Stodolak, President, National Marine Lenders Association (NMLA): “We support the advancement of HR 7222 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 Mace’s leadership in championing support for both consumers and the boating industry.”
- Frank Hugelmeyer, President and CEO, National Marine Manufacturers Association (NMMA): ”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. 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.”
- 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 Representative Mace for bringing this proposal forward.”
Learn More & Connect
For more information about this bill and to see the No Tax on Boat Loan Interest Act of 2026 text, read the official press release from the office of Congresswoman Nancy Mace.
For additional legislative updates or issues impacting marine retail, including recreational boat taxes, 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.
