The RV Dealers Association (RVDA) urged industry members to support both the bipartisan Travel Trailer and Camper Tax Parity Act (H.R. 3624), introduced by Reps. Rudy Yakym (R-IN) and Dina Titus (D-NV), and the companion bill S.3345, which was introduced by Sens. Joni Ernst (R-IA) and Angus King.
The Travel Trailer and Camper Tax Parity Act (H.R. 3624) would enable all RV dealers to fully deduct the interest on floor plan loans for non-motorized towable trailers, which account for 88 percent of RV sales, while its companion bill, S.3345, would remedy an error in the tax reform bill that inadvertently removed travel trailers from the definition of “motor vehicle” for the purposes of floor plan financing interest deductibility.
The bill has strong support from both RVDA and RVIA. Under the Tax Cuts and Jobs Act, floor plan interest on travel trailers/towable units is currently subject to a 30 percent limitation on interest expenses based on earnings before interest and taxes for dealers with more than $29 million in annual sales. RVDA said 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.
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