Congress Members Introduce Bipartisan Legislation to Address RV Dealer Financing Issue

Today, Congressman Rudy Yakym (IN-02) and Congresswoman Dina Titus (NV-01) introduced H.R. 3624, the Travel Trailer and Camper Tax Parity Act. 

The proposed legislation aims to amend the 2017 Tax Cuts and Jobs Act, allowing RV dealers to fully deduct interest on floor plan financing for all RVs, including the non-motorized towable trailers that make up 88% of RV sales.

Under current law, floor plan interest on travel trailers and towable units are subject to a 30% limitation on interest expenses based on earnings before interest and taxes, as per the News & Insights report of the RV Industry Association (RVIA).

The RV industry has been advocating for this fix to ensure that all segments of the RV industry are treated fairly by allowing floor plan financing interest charges on towable RVs to be a deductible expense.

The current legislation’s limitations on interest expenses have put RV dealers at a disadvantage when financing their inventory, ultimately affecting their ability to grow and compete within the recreational market. 

“As the representative from the ‘RV Capital of the World,’ I know just how important the RV industry is both to our regional economy and our way of life in Indiana,” said Congressman Yakym.

“Many families and tourists from across the country feel that the best way to explore Nevada’s natural landscapes and diverse flora and fauna is from an RV. This bipartisan legislation would help RVs stay competitive with other elements of the recreation industry, and allow even more people to explore our country in this unique way,” Congresswoman Titus added.

If the proposed legislation becomes law, RV dealers could experience improved cash flow due to the full deduction of interest on their floor plan financing, enabling them to compete more effectively within the industry and align better with other recreational market sectors.

Samantha Rocci, RVIA senior manager of government affairs, praised the effort, stating, “This crucial legislation addresses a now long-standing issue within the RV industry, providing much-needed relief to RV dealerships burdened by a drafting error.”

“By allowing dealers to fully deduct the interest on their floor plan financing for all units, this bill will ensure that RV travel trailer dealers are able to remain competitive with other types of recreation products, encourage growth, and foster a thriving marketplace for RV enthusiasts,” she said.

The passage of this legislation could benefit not only RV dealers but also the entire RV industry and outdoor recreation market, potentially leading to increased sales, job creation, and promoting the growth of outdoor tourism across the United States.

During Advocacy Day on Wednesday, June 7, the RV industry will be on Capitol Hill to thank Representatives Yakym and Titus for their leadership on this issue and to ask other Members of Congress to support the bill.

The full text of the legislation can be found here. By understanding and addressing the challenges faced by RV dealers, this bipartisan effort aims to strengthen the RV industry and enhance outdoor recreational opportunities across the nation.