Travel Trailer and Camper Tax Parity Act
Travel Trailer and Camper Tax Parity Act
Plain Language Summary
# Travel Trailer and Camper Tax Parity Act Summary **What it does:** This bill would give RV dealers and camper retailers a tax break by allowing them to deduct all interest costs on floor plan financing (loans used to buy inventory) from their business taxes. Currently, only dealers of motorized vehicles like self-propelled RVs get this full deduction, while dealers of non-motorized trailers and campers face limits on how much interest they can deduct (capped at 30% of their adjusted taxable income). **Who it affects:** The bill primarily benefits small and mid-sized businesses that sell or lease travel trailers, campers, and other towable recreational vehicles. It could indirectly affect consumers by potentially reducing operating costs for dealers, though the practical impact on prices is unclear.
The measure applies only to businesses, not individual RV owners. **Current status:** The bill (HR 332) was introduced by Rep. Rudy Yakym (R-IN) in the 119th Congress and is currently in committee, meaning it hasn't yet advanced to a full House vote. For the bill to become law, it would need to pass committee review, a House vote, Senate approval, and presidential signature.
CRS Official Summary
Travel Trailer and Camper Tax Parity ActThis bill expands the exclusion of interest on floor plan financing from the limit on the tax deduction for business interest expenses to include interest on floor plan financing of certain non-motorized, towable campers and trailers. Under current law, the tax deduction for business interest expenses is generally limited to 30% of adjusted taxable income. (Some exceptions apply.) However, under current law, interest on floor plan financing (financing used to acquire inventory for sale or lease) of motorized vehicles (e.g., self-propelled vehicles designed to transport people) is excluded from the limit on the tax deduction for business interest expenses.Under the bill, the exclusion of interest on floor plan financing from the limit on the tax deduction for business interest expenses is expanded to include interest on floor plan financing of any camper or trailer designed to (1) provide temporary living quarters for recreational, camping, or seasonal use; and (2) be towed by, or affixed to, a motor vehicle.
Latest Action
Referred to the House Committee on Ways and Means.