The One Big Beautiful Bill Act of 2025 (OBBBA) created a new, above-the-line deduction (no itemizing required) for interest paid on loans used to purchase qualifying recreational vehicles (RVs) and certain tow vehicles. This represents a major change from prior rules, under which RV interest was generally deductible only if the RV qualified as a “second home” and the taxpayer itemized. The new deduction is designed to broaden eligibility and provide tax relief to middle-income taxpayers, especially retirees.