On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act into law, introducing a new federal tax deduction that allows eligible taxpayers to deduct up to $10,000 annually in interest paid on loans for newly purchased, U.S.-manufactured vehicles.
However, despite initial expectations within the recreational vehicle industry, the final legislation excluded travel trailers and larger RVs from the tax benefit.
The law’s “No Tax on Car Loan Interest” provision applies to qualifying passenger vehicles manufactured in the United States.
While some recreational vehicles may meet the definition of an applicable passenger vehicle under the legislation, many RV categories—including travel trailers and larger motorized units—were removed from the final version of the bill after being included in the version previously passed by the House of Representatives.
The exclusion has prompted industry leaders and lawmakers to seek a legislative correction. A bipartisan proposal, the No Tax on RV Loans Act, has been introduced in both chambers of Congress to clarify that all recreational vehicles qualify for the deduction.
The House version, H.R. 8672, is led by Representatives Rudy Yakym and Dina Titus, while the Senate companion bill, S. 4653, is sponsored by Senator Todd Young, according to a Новости и аналитика отчет RVIA.
If enacted, the legislation would amend the existing tax provision to explicitly include all RVs under the vehicle loan interest deduction. Supporters argue that the measure would provide consumers purchasing American-built RVs with the same tax treatment currently available for other qualifying vehicles.
According to proponents of the bill, expanding eligibility would also support the domestic RV manufacturing sector. Nearly 90% of the world’s recreational vehicles are manufactured in the United States, and the industry supports approximately 643,000 American jobs. The proposal is also intended to provide tax relief for working- and middle-income households through income phase-outs designed to target the benefit toward eligible taxpayers.
Supporters further contend that extending the deduction would improve affordability for families considering RV ownership while aligning the tax treatment of recreational vehicles with their financing and registration status. Recreational vehicles are titled and financed as motor vehicles in all 50 states, and advocates say the tax code should reflect that distinction.
For RV dealers, manufacturers, campground operators, and other businesses serving the outdoor hospitality sector, the outcome of the proposed legislation could have broader implications beyond vehicle sales.
Lower financing costs may encourage additional RV purchases, which can contribute to increased campground occupancy, higher demand for RV services and accessories, and greater participation in outdoor recreation.
Businesses that rely on RV travelers may wish to monitor the progress of H.R. 8672 and S. 4653, as changes to consumer affordability could influence travel patterns and purchasing decisions in future seasons.
Industry advocates are encouraging stakeholders and consumers to contact their members of Congress in support of the No Tax on RV Loans Act, arguing that the legislation would restore eligibility for all recreational vehicles under the existing tax deduction and expand access to the benefit for American RV buyers.
The campaign encourages constituents to reach out to their members of Congress and support the No Tax on RV Loans Act, which proponents say would help reduce the cost of RV ownership. Supporters can take action здесь.