On May 22, the House of Representatives passed H.R. 1, the One Big Beautiful Bill Act, the bill that will extend the 2017 Trump tax cuts and provide funding for the federal government. Critical to the RV industry, the bill includes a fix that will enable all RV dealers to fully deduct the interest on floorplan loans for nonmotorized towable trailers, which account for 88% of all RV sales. This is significant progress on an issue the RV industry has been working on since the inadvertent error removed the floor plan deductibility for towable RVs in the 2017 Tax Cuts and Jobs Act.
Additionally, the RV Industry Association worked with its partners at the Outdoor Recreation Roundtable (ORR) to advocate for the removal of a provision in the bill that would have sold off 540,000 of acres of America’s public lands and waters in Nevada and Utah. In a letter sent earlier this week to House Speaker Mike Johnson, ORR emphasized the critical importance of keeping the public lands selloff out of this legislation.
The bill also includes crucial pro-manufacturing provisions, as reported by the National Association of Manufacturers (NAM), including:
- Increase the pass-through deduction for small and medium-sized manufacturers and make this important deduction permanent, freeing up capital for businesses to invest and create jobs.
- Make permanent the competitive individual tax rates established by tax reform, benefiting the 96% of manufacturers organized as pass-throughs that pay tax at these rates.
- Increase and make permanent tax reform’s estate tax exemption, protecting more family-owned manufacturers’ assets from the estate tax.
- Reinstate immediate R&D expensing, reducing the costs of groundbreaking research and supporting innovation across the manufacturing sector.
- Revive full expensing for capital equipment purchases, enabling manufacturers to purchase new machinery and expand their shop floors.
- Restore a pro-growth interest deductibility standard, enhancing manufacturers’ ability to pursue job-creating projects.
- Create an incentive for manufacturers’ investments in new and refurbished facilities, supporting factory construction here in the U.S.
- Preserve tax reform’s international tax system by making the FDII, GILTI and BEAT regimes permanent, enhancing America’s competitiveness on the world stage.
- Protect the 21% corporate tax rate, ensuring America remains the best place for manufacturing investment and job creation.
What’s next: The bill now goes to the Senate where it is expected to be amended.
The RV Industry Association Government Affairs team will continue to advocate for the inclusion of the floor plan fix in the final bill, including during the industry’s upcoming Advocacy Day.
