The RVIA has turned its attention to the federal affairs team and their priorities for the new year. The priorities will be shared in multiple parts. The following are the industry’s tax and trade priorities for the year.
Tax Priorities
In 2020, the federal affairs team will continue to support a fix to the 2017 Tax Cuts and Jobs Act that would ensure all segments of the RV industry are treated the same for tax filing purposes. By now, most members should be familiar with a drafting error in the law that led to towable RVs being excluded from the definition of “motor vehicle” for purposes of deductibility of floor plan financing. While motorhomes are still included, towable RVs are now capped at 30 percent for many dealers, an issue that has led to confusion during filing season while also making towable RVs less competitive compared to not only motorhomes but also other outdoor recreation products.
While any technical fixes to the 2017 tax bill remain uncertain, we have introduced bipartisan bills in both the House (HR 4349) and Senate (S 1543). These bills would amend the definition of motor vehicle to clarify that all forms of RVs are eligible for the full deduction. There may be opportunities for this legislation to be attached to legislation early this year, but insiders are saying that the two main windows for action will likely come in August and December following the election.
Whatever happens, the RVIA federal affairs team is well-positioned to take advantage of any opportunities throughout the year. Input from constituents on this issue matters and the RVIA asks its members to support this effort by contacting your member of Congress and asking them to support the Travel Trailer and Camper Tax Parity Act.
Trade Priorities
The federal affairs team also continues to monitor developments on the trade war with China. Its goal is to inform members of actions that may affect their businesses. This includes, but is not limited to, any updates or changes to tariffs on items on Lists 1-4, any extensions to exclusions granted over the past couple years, requests for comments from the United States Trade Representative (USTR) and the imminent Phase One deal. The federal affairs team is available to help RVIA members with questions, filing information or submitting comments.
Other trade issues of note will include the US-Mexico-Canada Free Trade Agreement, which most expect the Senate to pass in the first part of this year. The RVIA is also exploring new opportunities for member savings on tariffs currently being levied on products following last year’s victory with USTR on lauan plywood.
The federal affairs team will be reaching out to members in the next few weeks to gather information to make its trade coverage more relevant this year. They will also be shaping the RVIA’s position on the Trump Administration’s trade actions in 2020.
For more information on these issues, please contact Samantha Rocci at [email protected].
