U.S. Senators Joni Ernst (R-IA) and Angus King (I-ME), both members of the Senate RV Caucus, have introduced a bill that would reinstate the full tax deductibility of RV floorplan loan interest for travel trailer dealers with annual sales in excess of $25 million.
The Travel Trailer and Camper Parity Act is strongly supported by RV Dealers Association and RV Industry Association.
Motorhome floorplan interest remains deductible under the 2017 Tax Cut and Jobs Act, but there are limitations on deductions regarding travel trailer floorplan interest for some RV trailer dealers.
Other recreation dealers, including boats, motorhomes, conversion vans, motorcycles, and automobiles can fully deduct the interest paid on their inventory floorplans; however, RV trailer dealers’ net interest deduction is limited to 30% of earnings before interest, taxes, depreciation, amortization, and depletion. This harms not only their profitability but also their ability to effectively compete with other recreation dealers, according to RVDA.
RVDA will keep members updated on this legislation. To contact your U.S. Senator and let them know you support the Travel Trailer and Camper Parity Act, click here.
To read Sen. King’s statement on the bill, click here.