As the federal tax legislation package continues to move through Congress, the critical floorplan provision is still in the Senate Finance Committee’s markup of the bill. The provision was secured earlier this year in the House version of the bill.
“Thanks to the leadership of our champions, Sens. Joni Ernst (R-IA, Angus King (I-ME), Todd Young (R-IN), Jim Banks (R-IN) and Chuck Grassley (R-IA), the bill includes a fix to a longstanding flaw in the 2017 Tax Cuts and Jobs Act. Specifically, it restores full deductibility of floorplan 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 RV Industry Association (RVIA) said in its report.
The reconciliation bill includes a key provision titled “Floor plan financing applicable to certain trailers and campers,” which adds travel trailers to the modified business interest deduction formula — delivering long-overdue parity for RV dealers.
RVIA said it will continue to drive this critical policy victory forward for the RV industry as the bill moves through the Senate and back to the House this summer.
