Bill is Introduced to Address RV Dealer Floor Plan Financing – RVBusiness – Breaking RV Industry News
Yesterday, Congressman Rudy Yakym (IN-02) and Congresswoman Dina Titus (NV-01) introduced HR 332, the Travel Trailer and Camper Tax Parity Act, according to a News & Insights report by the RV Industry Association (RVIA). This bill fixes an inadvertent drafting error in the 2017 Tax Cuts and Jobs Act so that RV dealers can fully deduct the interest on their floor plan financing for all the RVs they sell, including non-motorized towable trailers, which account for 88% of RV sales.
Under current law and how motor vehicles are defined, floor plan interest on travel trailers/towable units is subject to a 30% limitation on interest expenses based on earnings before interest and taxes — motorhomes are not subject to this limitation. 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.
“Indiana’s Second District is the home of the ‘RV Capital of the World,’ an essential part of our local economy” said Congressman Yakym. “I am proud to reintroduce this sensible and bipartisan legislative solution along with Congresswoman Titus that will support the continued growth of the RV industry and ensure Americans can enjoy the natural beauty of our nation through RV travel and outdoor adventures for generations to come.”
“Many families and tourists across the country find the best way to explore our nation’s national parks and beautiful natural landscapes is from an RV,” said Congresswoman Dina Titus. “This bipartisan legislation would help RVs stay competitive with other elements of the recreation industry and allow even more people to explore our country in this unique way.”
“We applaud Representatives Yakym and Titus for their leadership in reintroducing the Travel Trailer and Camper Tax Parity legislation,” said Craig Kirby, RV Industry Association President & CEO. “This essential bill addresses a long-standing issue impacting RV dealerships by correcting a drafting error that impacts only towable RVs and has created unnecessary and unintended financial strain not faced by other similar industries. By ensuring dealers can fully deduct the interest on their floor plan financing for all units, this legislation will help RV travel trailer dealers stay competitive, drive industry growth, and support the millions of Americans who embrace RV travel as a way of life. We strongly encourage Congress to act quickly and pass this important legislation to secure the continued success of the all-American RV industry.”
The bill is available here. Please contact Samantha Rocci, Director of Federal Affairs, at [email protected] for more information.
