Major Victory in House Tax Bill for the RV Industry

The House tax legislation scheduled for a committee vote on Tuesday, May 13th, includes two significant wins for the RV industry.

Thanks to the leadership of our champions, Rep. Rudy Yakym (R-IN-2) and Dina Titus (D-NV-1), the bill includes a fix to a longstanding flaw in the 2017 Tax Cuts and Jobs Act. Specifically, it restores full deductibility of floor plan interest for all RV dealers — not just those selling motorhomes. Correcting this drafting error has been one of the RV industry’s top federal priorities.

The reconciliation bill includes a key provision titled “Floor plan financing applicable to certain trailers and campers,” which adds travel trailers to the modified business interest deduction formula — delivering long-overdue parity for RV dealers.

This success wouldn’t have been possible without broad support: seven Republican members of the House Ways and Means Committee co-sponsored Rep. Yakym’s legislation. In the Senate, Senators Joni Ernst (R-IA), Angus King (I-ME), Todd Young (R-IN), and Jim Banks (R-IN), have championed companion legislation to ensure RV dealers receive fair and consistent tax treatment.

As an added bonus, the House bill also includes trailers and campers designed for recreational camping and seasonal use in a provision exempting car loan interest expenses under $10,000. 

We’ll continue to drive these critical policy victories forward for the RV industry as the Senate takes up this legislation this summer.