I 112th CONGRESS 1st Session H. R. 1702 IN THE HOUSE OF REPRESENTATIVES May 3, 2011 Mr. Quigley (for himself, Mr. Walz of Minnesota, and Mr. Peters) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to allow the mortgage interest deduction with respect to boats only if the boat is used as the principal residence of the taxpayer.

1.

Short title

This Act may be cited as the Ending Taxpayer Subsidies for Yachts Act.

2.

Mortgage interest deduction allowed with respect to boats only if boat is used as the principal residence of the taxpayer

(a)

In general

Subclause (ii) of section 163(h)(4)(A) of the Internal Revenue Code of 1986 is amended by inserting (other than a boat) after 1 other residence of the taxpayer. (b)

Effective date

(1)

In general

The amendment made by this section shall apply to indebtedness incurred after the date of the enactment of this Act. (2)

Special rule for refinancings

For purposes of this subsection, indebtedness resulting from the refinancing of indebtedness shall be treated as incurred on the date the refinanced indebtedness was incurred (taking into account the application of this paragraph in the case of multiple refinancings) but only to the extent the indebtedness resulting from such refinancing does not exceed the refinanced indebtedness.