(WCIV) — U.S. Rep. Nancy Mace recently introduced legislation that would allow taxpayers to deduct interest paid on loans for certain American-made recreational boats, extending a tax benefit currently available for motor vehicles. The proposal, titled the No Tax on Boat Loan Interest Act of 2026, would update the federal tax code to permit an above-the-line deduction for interest paid on loans used to purchase qualified recreational watercraft. Under the bill, the maximum deduction would be $10,000 per year and would apply through 2028. The deduction would begin to phase out for taxpayers with modified adjusted gross income above $100,000, or $200,000 for joint filers. “South Carolina’s boating industry is the backbone of our coastal economy,” Mace said. “This legislation ensures American-made recreational boats are treated fairly under the tax code, supporting the thousands of South Carolina families whose livelihoods depend on marine manufacturing and services. It’s about protecting good-paying jobs in our coastal communities and providing tax relief to the hardworking South Carolina families who power our state’s economy.” To qualify, boats would need to be first used by the purchaser, classified as recreational vessels and motorboats under federal law, and assembled in the United States. Taxpayers claiming the deduction would be required to provide the boat’s hull identification number on their tax return. Supporters of the legislation say it could benefit South Carolina’s recreational boating industry, which generates more than $6.5 billion in annual economic impact and supports more than 27,100 jobs statewide. South Carolina has more than 350,000 registered recreational boats, according to figures cited in the announcement. Mace said the bill is intended to support marine manufacturing and related businesses while providing tax relief to families who own boats, particularly in coastal areas. The recreational boating industry is a major economic driver in South Carolina’s Lowcountry and other coastal regions, employing workers across manufacturing, sales, service and marina operations, according to the release. National boating industry organizations also expressed support for the proposal, including the National Marine Manufacturers Association, the Marine Retailers Association of the Americas and the Boat Owners Association of the United States. Industry representatives said the measure would strengthen domestic manufacturing, support small businesses and make boat ownership more affordable for families. Nationwide, the U.S. recreational boating industry generates an estimated $230 billion in annual economic impact and supports more than 812,000 jobs across more than 36,000 businesses, according to figures included in the announcement. The bill has been introduced but has not yet been scheduled for committee consideration. Categories: News, Politics, State Tags: Nancy Mace, Rep. Nancy Mace, Representative Nancy Mace, sc governor’s race ...read more read less