A House tax bill scheduled for a committee vote on Tuesday, May 13, includes two key provisions that mark a significant victory for the recreational vehicle industry, according to a News and Insights report of RVIA.
Backed by Rep. Rudy Yakym (R-IN-2) and Rep. Dina Titus (D-NV-1), the legislation corrects a longstanding issue in the 2017 Tax Cuts and Jobs Act by restoring full deductibility of floor plan interest for all RV dealers—not just those selling motorhomes.
The drafting error correction has been one of the RV industry’s primary federal priorities.
The bill includes a provision titled “Floor plan financing applicable to certain trailers and campers,” which incorporates travel trailers into the modified business interest deduction formula.
The measure brings long-overdue tax parity to RV dealers who sell towable units.
“This success wouldn’t have been possible without broad support: seven Republican members of the House Ways and Means Committee co-sponsored Rep. Yakym’s legislation,” the industry noted.
In the Senate, support continues to build. Senators Joni Ernst (R-IA), Angus King (I-ME), Todd Young (R-IN), and Jim Banks (R-IN) have backed companion legislation intended to deliver fair and consistent tax treatment for RV dealers.
The House bill also includes an additional provision that benefits the RV industry. It extends an exemption from car loan interest expenses under $10,000 to include trailers and campers designed for recreational camping and seasonal use.
“We’ll continue to drive these critical policy victories forward for the RV industry as the Senate takes up this legislation this summer,” RVIA indicated.