U.S. Reps. Rudy Yakym of Indiana and Dina Titus of Nevada introduced bipartisan legislation that would eliminate taxes on RV loan interest by extending the Working Families Tax Cut’s no-tax provision on auto loans to trailers, campers and recreational vehicles.
The bill, H.R. 8672, would allow consumers to deduct interest paid on RV loans, including loans for trailers, campers and motor vehicles designed for recreational or seasonal living quarters.
Yakym said the measure would provide financial relief to families purchasing recreational vehicles and support the RV industry.
“For millions of American families, an RV is how they take a summer road trip with the kids, see the country, or enjoy retirement on the open road,” Yakym said, as reported by a News and Insights report of RVIA. “It’s a big investment, and it should be treated like one.”
Yakym, who represents Indiana’s Second Congressional District, said he regularly hears from RV manufacturers and dealers about the potential impact of the proposal on consumers.
“This bill is simple: if you’re paying interest on an RV loan, you should be able to deduct it,” Yakym said.
Titus said the legislation would help make RV travel more affordable for families and tourists visiting national parks and outdoor destinations.
“For many families and tourists across the country, there is no better way to experience our national parks and beautiful natural landscapes than from an RV,” Titus said. “This bipartisan legislation will help make that more affordable, allowing even more people to explore Nevada and boosting our outdoor recreation in these challenging economic times.”
The proposal received support from the RV Industry Association (RVIA), which said the legislation would restore travel trailers to the classification of “applicable passenger vehicles” under the tax provision.
“We applaud Representatives Yakym and Titus for their leadership in introducing this bill to include all RVs in the No Tax on Vehicle Loan Interest provision,” Craig Kirby, president and CEO of the RVIA, said.
Kirby said the legislation would apply tax benefits more evenly across the RV sector and help maintain affordability for consumers.
More than 8 million American households own an RV, and millions of travelers use recreational vehicles for vacations, camping trips and seasonal travel each year.
Indiana’s Elkhart County, located within Yakym’s district, manufactures about 80% of all recreational vehicles sold in the United States, according to the announcement. The RV industry supports tens of thousands of jobs in Indiana and generates billions of dollars in economic activity annually.