As per the RV Industry Association’s (RVIA) News & Insight report, the federal tax code’s definition of “motor vehicle” has created disparities within the RV industry.
Specifically, motorhomes enjoy full deductibility of floor plan financing interest charges, while towable RVs are limited to deductions of only 30% of interest expenses based on earnings before interest and tax. This difference in deductions was not the intended consequence of the Tax Cuts & Jobs Act back in 2017.
This coming Thursday, May 18, a webinar led by Senior Manager of Government Affairs, Samantha Rocci, will explain the origins of this tax treatment and the bill Congress should pass to remedy the issue. The webinar aims to inform RV dealers about the current situation and provide insights into possible solutions.
The upcoming Advocacy Day will focus on this issue, among others, as participants speak with their Members of Congress to advocate for fair tax treatment in the RV industry.
Those planning to attend Advocacy Day are encouraged to attend the webinar to gain a deeper understanding of the topic and be well-prepared for their meetings with lawmakers.
Even for those not attending Advocacy Day, the webinar presents an opportunity to learn more about how this issue is negatively impacting the RV industry and what actions can be taken to help resolve it.
The tax disparity between motorhomes and towable RVs significantly affects RV dealers who primarily deal with towable units. The limited deductions for towable RVs result in higher tax burdens for these dealers, potentially hindering their growth and competitiveness within the industry.
By addressing this issue through legislation, RV dealers in the towable segment can benefit from a more level playing field, fostering a more competitive and healthy marketplace.
Ensuring fair tax treatment for all RV dealers is essential for the continued success of the industry as a whole, positively impacting businesses, employees, and consumers alike.