The following report is from RVIA’s News & Insights.
On Monday, Jan. 13, Indiana Congressman Rudy Yakym and Nevada Congresswoman Dina Titus introduced HR 332, the Travel Trailer and Camper Tax Parity Act.
The bill fixes an inadvertent drafting error in the 2017 Tax Cuts and Jobs Act so that RV dealers can fully deduct the interest on their floor plan financing for all the RVs they sell, including non-motorized towable trailers, which account for 88% of RV sales.
Under current law and how motor vehicles are defined, floorplan interest on travel trailers/towable units is subject to a 30% limitation on interest expenses based on earnings before interest and taxes — motorhomes are not subject to this limitation.
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.
“Indiana’s Second District is the home of the ‘RV Capital of the World,’ an essential part of our local economy” said Yakym. “I am proud to reintroduce this sensible and bipartisan legislative solution along with Congresswoman Titus that will support the continued growth of the RV industry and ensure Americans can enjoy the natural beauty of our nation through RV travel and outdoor adventures for generations to come.”
The bill will be posted to Congress.gov when it becomes available.
