Yakym, Davis Introduce Bipartisan Bill to Eliminate Taxes on Boat Loans

WASHINGTON, D.C. – On Tuesday, Congressman Rudy Yakym (IN-02) and Congressman Don Davis (NC-01) introduced the Boat Loan Interest Deduction Act of 2026 (H.R. 9532), bipartisan legislation that would extend the Working Families Tax Cut’s No Tax on Auto Loans provision to boats. 

“There’s nothing more American than loading up the family and heading out on the lake for a summer afternoon. It’s an important investment, and it should be treated like one,” Rep. Yakym said. “As the congressman representing a district that builds some of the finest boats in the country, I hear from manufacturers and families alike about what this relief would mean. This bill is simple: if you’re paying interest on a boat loan, you should be able to deduct it.” 

“As co-chair of the Congressional Boating Caucus, I am proud to stand with the communities, workers, and businesses that power America’s boating industry. From the Outer Banks to the Albemarle Sound and along the rivers and coastal waterways of eastern North Carolina, boating is a way of life that fuels our economy, supports marinas, boat dealers, marine manufacturers, and charter businesses, and creates opportunities for thousands of hardworking North Carolinians whose livelihoods depend on the water,“ Rep. Davis said. “As our nation celebrates 250 years of freedom and opportunity, we have a responsibility to stand behind American craftsmanship and the skilled workers who build the boats that carry our traditions forward. I am proud to support legislation that keeps America’s boatbuilding industry competitive, strengthens American manufacturing, protects good-paying jobs, and preserves the coastal way of life that defines eastern North Carolina.”

This legislation has gained the support of several members of the boating and manufacturing industries:

“Eliminating taxes on boats is a win for American families, jobs, and manufacturing,” said Smoker Craft, Inc. “As one of the oldest family-owned and operated boat manufacturers in the country, Smoker Craft, Inc. has always focused on value and accessibility. Lowering the cost of ownership puts more people on the water, strengthens our industry, and supports the communities that depend on it. We’re grateful to Representative Rudy Yakym for his leadership in advancing this important effort.”

“On behalf of Brunswick Corporation, America’s Marine Company and the world’s largest manufacturer of recreational marine products, we applaud Congressman Rudy Yakym and Congressman Don Davis’ bipartisan bill on behalf of American consumers,” said Ryan Gwillim, Chief Financial Officer of Brunswick Corporation. “Brunswick has worked closely with Congressman Yakym and Congressman Davis to advance policies that support access to recreation and strengthen U.S. manufacturing. Boating is an important part of how many middle-class families connect with the outdoors, and America’s waterways are one of our nation’s greatest assets. This legislation helps ensure that more families can continue to participate in the boating lifestyle for years to come.”

“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,” said Frank Hugelmeyer, President and CEO of NMMA. “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.”

“H.R. 1 was a historic investment in manufacturing, empowering manufacturers across the country to invest, innovate, and create jobs,” said Charles Crain, Managing Vice President of Policy, National Association of Manufacturers. “Expanding the law’s pro-growth tax provisions to a broader range of manufacturers will help ensure continued U.S. manufacturing leadership across industries. We are grateful to Congressman Yakym for his continued efforts towards a competitive tax code that supports making things in America.”

Background:

• The bill allows Americans to deduct up to $10,000 in interest relating to loans for qualifying boats. Qualifying boats must have final assembly in the U.S. The deduction phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers).
• Indiana’s Second Congressional District is a major hub for the American boating industry, centered in Elkhart and Kosciusko counties, which produce pontoon, fishing, and family deck boats.
• An estimated 85 million Americans go boating each year on roughly 11 million registered boats nationwide. Restoring the interest deduction would lower the cost of ownership for families across the country.

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