WASHINGTON, D.C. — U.S. Reps. Jackie Walorski, R-IN-2, and Stephanie Murphy, D-FL-7, Tuesday introduced the bipartisan Travel Trailer and Camper Tax Parity Act (H.R. 4349) to restore inventory financing interest deductibility for all types of RVs, including travel trailers and campers.
“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,” Walorski said. “The Travel Trailer and Camper Tax Parity Act will fix an unintended consequence of one provision that’s putting certain RVs at a disadvantage.
Walorski said this is a technical correction that is normal part of the process when Congress enacts major reforms such as the Tax Cuts and Jobs Act of 2017.
“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,” said Walorski.
Under President Donald Trump’s tax bill, interest paid on RV dealer inventory inadvertently excluded non-motorized travel trailers, said Walorski. The House and Senate versions of tax reform legislation specifically intended to include towable RVs as motor vehicles, but the final version of the Tax Cuts and Jobs Act 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. According to the RV Industry Association, approximately 88 percent of RVs sold are travel trailers. Shipments of towable RVs were down by 20,4 percent in July 2019 compared to July 2018. Motorhome shipments were down 22.4 percent in the same period, according to RVIA.
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.