A key provision restoring full deductibility of floor plan interest for all RV dealers remains in the Senate Finance Committee’s markup of the federal tax legislation package, providing a major win for the recreational vehicle industry as the bill advances through Congress.
Earlier this year, the House version of the bill secured fixing what industry stakeholders have called a long-standing flaw in the 2017 Tax Cuts and Jobs Act.
According to a News and Insights report of RVIA, Sens. Joni Ernst (R-IA), Angus King (I-ME), Todd Young (R-IN), Jim Banks (R-IN), and Chuck Grassley (R-IA) have been credited with championing the provision in the Senate.
“It restores full deductibility of floor plan interest for all RV dealers — not just those selling motorhomes. Correcting this drafting error has been one of the RV industry’s top federal priorities,” the association states.
The reconciliation bill adds travel trailers to the modified business interest deduction formula through the provision titled “Floor plan financing applicable to certain trailers and campers.” This change extends the tax benefit to dealerships selling towable units, a large segment of the market.
RVIA said they will continue pushing the policy measure forward for the RV sector as the bill progresses through the Senate and returns to the House this summer.
The association, with offices in the Washington, D.C., area and Elkhart, Indiana, serves as the leading trade voice for the $140 billion RV industry.
Representing more than 500 manufacturers, component makers, and aftermarket suppliers, the association’s members collectively produce 98% of all recreational vehicles built in the United States and about 60 percent of those produced worldwide.
As the unifying body for the diverse RV sector, the association brings together industry stakeholders and builds partnerships to advocate with a single, influential voice. Through collaboration with its members, it promotes innovation and growth, helping shape the future of mobile travel and outdoor leisure.
Its initiatives and committees address critical issues such as safety standards, public policy, and market research, ensuring the industry remains responsive to consumer demand and regulatory changes.