Congress expands tax breaks for RV and motorcycle owners
H.R. 8672 — To amend the Internal Revenue Code of 1986 to allow a deduction for loan interest payments made with respect to certain vehicles. · Filed by Rudy Yakym (R-IN) · 4 cosponsors · Introduced May 7, 2026 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill expands the tax deduction for interest paid on vehicle loans to include recreational vehicles (RVs, campers, trailers) and motorcycles. Currently, the tax code allows interest deductions only for certain passenger vehicles; this bill adds RVs and campers to that list, effective for loans taken out after December 31, 2025, allowing owners of these vehicles to deduct the interest they pay on loans used to purchase them.
Why we flagged it
The bill's sole operative mechanism is to expand the definition of vehicles eligible for the IRC 163(h)(4) interest deduction to include recreational vehicles and motorcycles. It is a straightforward tax-code amendment with no hidden provisions or riders.
What the text implies
- The deduction may incentivize higher-income households to purchase more expensive RVs and recreational vehicles, as the tax subsidy effectively lowers the after-tax cost of financing.
- Federal revenue loss from this deduction will accumulate over time as more taxpayers claim it; the Joint Committee on Taxation would estimate the 10-year revenue impact, which is not stated in the bill.
The full analysis lists 3 implications of this text.
Who stands to gain
RV manufacturers and dealers; Recreational vehicle financing companies and lenders; Motorcycle manufacturers and dealers