Rep. WalorskiU.S. Reps. Jackie Walorski (R-Ind.) and Stephanie Murphy (D-Fla.) recently introduced the bipartisan “Travel Trailer and Camper Tax Parity Act” (H.R. 4349) to restore inventory financing interest deductibility for all types of RVs, including travel trailers and campers.
“Businesses across the country – including RV and trailer manufacturers in my district – are investing, expanding, and hiring more workers as a result of tax reform,” said Walorski.
“The Travel Trailer and Camper Tax Parity Act will fix an unintended consequence of one provision that’s putting certain RVs at a disadvantage. Technical corrections like this are a normal part of the process when Congress enacts major reforms like the Tax Cuts and Jobs Act. This bipartisan, commonsense RV floor plan tax fix will provide certainty for small businesses and manufacturers, and it will ensure the RV industry can fully unlock the benefits of tax reform and keep our nation’s economic momentum going.”
Under tax reform legislation signed into law in December 2017, a deduction for interest paid on RV dealer inventory inadvertently excluded non-motorized travel trailers. The House and Senate versions of tax reform legislation specifically intended to include towable RVs as motor vehicles, but the final version of the Tax Cuts and Jobs Act simplified the definition of motor vehicles.
As a result, the full tax exemption now only applies to RV motorhomes. According to the RV Industry Association, approximately 88 percent of RVs sold are travel trailers.
The Travel Trailer and Camper Tax Parity Act would restore the full deductibility of inventory financing interest for all types of RVs, including motorhomes, travel trailers, and campers, as originally intended by Congress.
