Two members of the RV House Caucus introduced legislation that would enable RV dealers to fully deduct floorplan financing interest for towable RVs.
The bill, the Travel Trailer and Camper Tax Parity Act, is H.R. 3624. Under current law and how motor vehicles are defined, floorplan interest on towable RVs is subject to a 30% limitation on interest expenses based on earnings before interest and taxes.
Floorplan financing interest on motorized RVs, meanwhile, is fully deductible.
The bill was introduced by Reps. Rudy Yakym (R-Ind.) and Dina Titus (D-Nev.)
“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,” Yakym said. “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.”
The RV industry has been advocating for this fix to ensure that all RV industry segments are treated fairly. Towable RVs account for 88% of all industry RV sales.
“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,” Titus said. “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.”
Samantha Rocci, RVIA’s senior manager of government affairs, said the industry welcomed the legislation.
“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,” Rocci said. “By allowing dealers to fully deduct the interest on their floorplan 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.”
