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Yakym, Titus to Push Bill Addressing RV Dealer Floor Plan Financing Issues

Reps. Rudy Yakym and Dina Titus have introduced new legislation aimed at addressing a long-standing issue affecting RV dealerships. The Travel Trailer and Camper Tax Parity Act, introduced as HR 332, seeks to correct a provision within the 2017 Tax Cuts and Jobs Act that has disadvantaged dealers selling non-motorized towable trailers. 

The bipartisan bill was introduced on Monday (January 13), with both lawmakers emphasizing its importance to the RV industry and its potential to drive further growth in the recreational vehicle sector.

The primary focus of HR 332 is to ensure that RV dealers can fully deduct the interest on their floor plan financing for all RV units they sell, including towable trailers, which account for a significant portion of the market. 

Currently, towable units are subject to a 30% limitation on interest deductions due to how motor vehicles are defined in the existing law. This discrepancy has placed towable RV dealers at a financial disadvantage compared to their counterparts selling motorhomes.

“Indiana’s Second District is the home of the ‘RV Capital of the World,’ an essential part of our local economy,” Congressman Yakym said. 

Yakym highlighted the critical role the RV industry plays in Indiana, where a significant portion of RVs sold in the U.S. are manufactured. Yakym noted that the bill aims to provide equitable treatment for all RV dealers, thereby supporting the continued expansion of this key industry.

Congresswoman Titus echoed these sentiments, pointing out that RVs are an integral part of the American travel experience. “Many families and tourists across the country find the best way to explore our nation’s national parks and beautiful natural landscapes is from an RV,” Titus said. 

She underscored that the legislation would help ensure RVs remain competitive within the broader recreation industry.

The RV industry has long called for this legislative fix, citing it as a necessary step to alleviate financial strain on dealerships. According to a News and Insights report of RVIA, Craig Kirby, president and CEO of the RV Industry Association (RVIA), expressed strong support for the bill, praising Yakym and Titus for their leadership on the issue. 

“This essential bill addresses a long-standing issue impacting RV dealerships by correcting a drafting error that impacts only towable RVs,” Kirby said. He added that the correction would help drive growth in the RV sector by ensuring all dealers can deduct floor plan interest expenses equally.

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Hi, you might find this article from Modern Campground interesting: Yakym, Titus to Push Bill Addressing RV Dealer Floor Plan Financing Issues! This is the link: https://moderncampground.com/usa/yakym-titus-to-push-bill-addressing-rv-dealer-floor-plan-financing-issues/