FAIRFAX, Va. – Today, Congressman Rudy Yakym (IN-02) and Congresswoman Dina Titus (NV-01) introduced H.R. 3624, the Travel Trailer and Camper Tax Parity Act, according to information provided by the RV Industry Association (RVIA).
This bill makes a fix to 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 the Tax Cuts and Jobs Act, which Congress passed in 2017, floor plan interest on travel trailers/towable units is currently subject to a 30% limitation on interest expenses based on earnings before interest and taxes for dealers with more than $25 million in annual sales.
“As the representative from the ‘RV Capital of the World,’ I know just how important the RV industry is both to our regional economy and our way of life in Indiana,” said Congressman Yakym. “I am proud to introduce this commonsense and bipartisan legislative solution along with Congresswoman Titus to help ensure the RV industry thrives for years to come and so Americans can enjoy the great outdoors from an RV and experience all the natural beauty our country has to offer.”
“Many families and tourists from across the country feel that the best way to explore Nevada’s natural landscapes and diverse flora and fauna is from an RV,” said Congresswoman 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.”
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.
“This bill will correct an oversight in the 2017 tax cut bill and again treat motorhomes and towable RVs equally under the nation’s tax law,” said RVDA President Phil Ingrassia. “RVDA thanks Representatives Yakym and Titus for their leadership efforts to pass this important piece of legislation.”
“We commend Representatives Yakym and Titus for their bipartisan effort in reintroducing the RV Floor Plan Tax Fix legislation,” said Samantha Rocci, RV Industry Association senior manager of Government Affairs. “This crucial legislation addresses a now long-standing issue within the RV industry, providing much-needed relief to RV dealerships burdened by a drafting error. By allowing dealers to fully deduct the interest on their floor plan financing for all units, this bill will ensure that RV travel trailer dealers are able to remain competitive with other types of recreation products, encourage growth, and foster a thriving marketplace for RV enthusiasts. We urge Congress to swiftly pass this legislation and support the continued success of the RV industry.”
During Advocacy Day on Wednesday, June 7, the RV industry will be on Capitol Hill to thank Reps. Yakym and Titus for their leadership on this issue and to ask other members of Congress to support the bill.
Full text of the legislation can be found HERE.