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RV industry supports bill to fix floor plan deductibility

RV industry supports bill to fix floor plan deductibility

WASHINGTON, D.C. — U.S. House Rep. Tom Emmer (R-MN-6) and Representative Jackie Walorski (R-IN-2), Co-Chair of the House RV Caucus, are sponsoring new legislation to ensure that towable RVs are included in the floor plan interest financing deductibility provisions of the Tax Cuts and Job Act.

The Travel Trailer and Camper Technical Corrections Act (H.R.6969) was introduced this week with the strong support of the RV Industry Association and the national RV Dealers Association (RVDA). Last year’s tax reform bill provided much needed relief for small businesses, however, a last minute definition change in one section of the bill unintentionally resulted in effectively removing travel trailers from the definition of “motor vehicle” for the purposes of floor plan financing interest deductibility. Made during the House-Senate conference, this change unintentionally disadvantaged the RV travel trailer industry, by limiting the deductibility of some RV trailer dealers’ floor-plan costs.

The change impacts RV trailer dealers with more than $25 million in annual sales. Other dealers, including boats, motorhomes, conversion vans, motorcycles, and automobiles, can fully deduct interest paid on their inventory floor plans. However, RV trailer net interest deduction is limited to 30 percentof earnings before interest, taxes, depreciation, amortization, and depletion. It is estimated that four out of every 10 dollars spent at an RV retail establishment is generated by a dealer with $25 million or more in annual sales.

“As the law is currently written, our RV dealers do not have the clarity and consistency they need, putting them at an unnecessary competitive disadvantage,” said Congressman Emmer. “Since RV ownership continues to climb in Minnesota and across the country, it is imperative for Congress to immediately correct this oversight in the new tax law by passing this common-sense legislation.”

All 50 states define and regulate towable RVs and campers as Motor Vehicles. Through a small, technical fix, this bill ensures that motorized and non-motorized campers and travel trailers are treated the same under the U.S. tax code.

For more information or to contact Congress on this issue, click here.

RVDA and the RV Industry Association will keep members informed about the progress of H.R.6969.

 

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About Ronnie Wendt

Ronnie Wendt is the editor in chief of RV Daily Report. She's been a writer/editor for more than 25 years, working in law enforcement, aviation, supply chain and now the RV industry. She's not a stranger to RVs, however. She grew up camping, and still camps as many weekends as she can every year.

One comment

  1. GA does not recognize towable RVs as motor vehicles. With that being said, are not exempt from the annual ad valorem taxes that motor homes enjoy.

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