As a result of the RV industry’s collective voice during multiple grassroots campaigns, an amended version of the Retirement, Savings, and Other Tax Relief Act (H.R. 88), which included the proposed RV floor plan financing interest deductibility language, passed the U.S. House yesterday, by a vote of 220 to 183. Congresswoman Jackie Walorski (R-IN), who is co-chair of the House RV Caucus, also worked tirelessly to ensure the fix to this tax glitch was included in the RV-friendly bill.
Last year's tax reform bill provided much-needed relief for small businesses; unfortunately, a last-minute definition change made during the House-Senate conference, unintentionally removed travel trailers from the definition of "motor vehicle" for the purposes of floor plan financing interest deductibility. This change inadvertently disadvantaged the RV travel trailer industry, by limiting the interest deductibility of the RV trailer dealer's floor-plan costs.
“In order to continue building on our nation’s economic momentum, we need to work constantly to ensure our tax code is working for the American people,” Congresswoman Walorski said. “This critical legislation modernizes the IRS so it always puts service to the taxpayer first. It gives families and businesses better tools to boost saving for the future and for retirement. It delays the job-killing medical device tax and other costly taxes like the health insurance tax and the ‘Cadillac tax.’ And it makes a small but critical fix to ensure certain types of RVs don’t wrongly face different treatment under a provision in the tax code.”
Despite the House’s passage of H.R. 88, the legislation has an extremely tough path in the Senate, as many key Democrats have expressed opposition to several of the proposed tax changes.
Please contact your Senators and urge them to swiftly pass H.R. 88!