RVDA Legislative Alert: Ask Congress to Restore Floor Plan Deductibility for RVs

Nov 14, 2018 | Member News

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 removed travel trailers from the definition of “motor vehicle” for the purposes of deducting floor plan interest for some dealers.  This impacts RV trailer dealers with more than $25 million in annual sales.
New legislation, the Travel Trailer and Camper Technical Corrections Act (S.3600 & H.R.6969), has been introduced to ensure that towable RVs are included in the floor plan interest financing deductibility. Ask your Member of Congress to support the legislation today.
For more information and to contact your members of Congress, click here.
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 percent of earnings before interest, taxes, depreciation, amortization and depletion. It is estimated that four out of every ten dollars spent at an RV retail establishment is generated by a dealer with $25 million or more in annual sales.