Misguided Legislation Will Risk Boating Industry Jobs

***RECREATIONAL BOATING ASSOCIATION OF WASHINGTON MESSAGE COURTESY OF THE NATIONAL MARINE MANUFACTURERS ASSN***

Misguided Legislation Will Risk Boating Industry Jobs

On May 3, 2011, the Ending Taxpayer Subsidies for Yachts Act (H.R. 1702), a bill that would remove the deductibility of interest on boats that are used as second homes, was introduced in the House of Representatives.

This misnamed and misguided legislation is based on the incorrect premise that American taxpayers are subsidizing extravagant lifestyles of yacht owners, overlooking the fact that 75% of all boat owners in the US have a household income of less than $100,000 per year.

A "yacht," by definition in the Bill, is any vessel that is 26 feet or longer, and the deduction on interest expense is only applicable if the boat has a head, galley, and sleeping berth. Many boats of this size function as a second home in the same manner as second homes (or R.V's) on land, which enjoy similar tax breaks on their mortgage interest.

If this legislation becomes law, sales of boats and boating services would diminish, risking thousands of American jobs.

Send a letter or email to your Member of Congress urging them to oppose H.R. 1702.