Travel Trailer and Camper Tax Parity Act

Currently, the tax exemption for interest paid on RV dealer inventory unfairly favors motorhomes over travel trailers. While interest on motorhomes is fully deductible, travel trailers are only eligible for a 30 percent deduction, affecting 85% of RVs sold.  

 This is because the definition of “motor vehicle” in the federal tax code no longer includes “recreation vehicles” as its own category but includes a catch-all definition specifying “self-propelled vehicles.” This inadvertently excludes towables, which make up 85% of RV sales. This is unfair and was not the Congressional intent behind changing the definition of “motor vehicle.”  

 Fortunately, bipartisan support in both the House and Senate is rallying behind legislation to rectify this disparity. Representatives Rudy Yakym and Dina Titus introduced H.R. 3624, while Senators Joni Ernst and Angus King introduced S. 3345. These bills aim to amend the deductibility provisions, ensuring that towable RVs receive equitable treatment in financing. 

RVIA supports the Travel Trailer and Camper Tax Parity Act, H.R. 3624 and S. 3345 to ensure equitable treatment in financing for all types of RVs.