The U.S. House of Representatives on Thursday, May 22, passed H.R. 1, the One Big Beautiful Bill Act, a budget reconciliation package that extends the 2017 tax cuts and allocates funding for federal government operations.
Among the legislation’s provisions is a long-sought correction allowing RV dealers to fully deduct interest on floorplan loans for non-motorized towable trailers, which represent 88% of all RV sales.
The floorplan deduction fix addresses an unintended consequence of the 2017 Tax Cuts and Jobs Act, which had excluded towable RVs from the provision. Industry stakeholders have advocated for years to rectify the oversight.
In addition to tax-related measures, the bill removes a controversial land provision that would have resulted in the sale of 540,000 acres of public lands and waters in Utah and Nevada.
According to a News and Insights report of RVIA, the RV Industry Association (RVIA), working in partnership with the Outdoor Recreation Roundtable (ORR), successfully advocated for its exclusion, emphasizing the importance of public lands to outdoor recreation businesses.
ORR also sent a letter to House Speaker Mike Johnson urging lawmakers to protect public lands.
Manufacturing interests also gained ground in the bill, with several measures reported by the National Association of Manufacturers (NAM) that could benefit RV manufacturers and suppliers. These include a permanent increase to the pass-through deduction for small and medium-sized manufacturers, aimed at stimulating investment and job creation.
The bill further cements the individual tax rates established in the 2017 reform, benefiting the 96% of manufacturers structured as pass-through entities.
Additional provisions include the permanent expansion of the estate tax exemption, a change designed to protect the assets of family-owned manufacturing businesses.
One of the most critical manufacturing-related provisions is the reinstatement of immediate research and development expensing.
With House passage complete, the legislation now moves to the Senate, where amendments are anticipated.
“The RV Industry Association Government Affairs team will continue to advocate for the inclusion of the floor plan fix in the final bill, including during the industry’s upcoming Advocacy Day,” the association indicates.