Walorski And Murphy Introduce Bipartisan RV Floor Plan Tax Fix

U.S. Representatives Jackie Walorski (R-Ind.) and Stephanie Murphy (D-Fla.) introduced the bipartisan Travel Trailer and Camper Tax Parity Act (H.R. 4349) to restore inventory financing interest deductibility for all types of RVs. Through grassroots efforts and Advocacy Day meetings with Members of Congress, the RV industry has been calling on Congress to address an error in the 2017 Tax Cuts and Jobs Act (TCJA) that led to an unintended definition change that is currently disadvantaging the towable segment of the RV industry.

“Businesses across the country – including RV and trailer manufacturers in my district – are investing, expanding and hiring more workers as a result of tax reform,” said Congresswoman Walorski. “The Travel Trailer and Camper Tax Parity Act will fix an unintended consequence of one provision that’s putting certain RVs at a disadvantage. Technical corrections like this are a normal part of the process when Congress enacts major reforms like the Tax Cuts and Jobs Act. This bipartisan, commonsense RV floor plan tax fix will provide certainty for small businesses and manufacturers, and it will ensure the RV industry can fully unlock the benefits of tax reform and keep our nation’s economic momentum going.”

“We want to thank Congresswomen Walorski and Murphy for introducing the Travel Trailer and Camper Tax Parity Act,” said RV Industry Association Manager of Government and Political Affairs Samantha Rocci. “Other types of recreation products are currently able to fully deduct interest paid on their inventory floor plans. This bipartisan, commonsense fix will ensure RV trailer dealers are able to remain competitive with these other recreation products and help the RV industry continue its all-American success story.”

Under tax reform legislation signed into law in December 2017, a deduction for interest paid on RV dealer inventory inadvertently excluded non-motorized travel trailers. The House and Senate versions of tax reform legislation specifically intended to include towable RVs as motor vehicles, but the final version of the TCJA simplified the definition of motor vehicles.

As a result, the full tax exemption now only applies to RV motorhomes, putting the RV travel trailer industry at a disadvantage and forcing larger dealers to use different accounting rules for trailers and motorhomes. The Travel Trailer and Camper Tax Parity Act would restore the full deductibility of inventory financing interest for all types of RVs, including motorhomes, travel trailers, and campers, as originally intended by Congress.

This bill is the companion to the legislation introduced in May by Senators Joni Ernst (R-IA) and Angus King (I-ME).

For more information, contact Samantha Rocci at srocci@rvia.org.