Walorski bill fixes tax glitch which hurt RV industry

U.S. Rep. Jackie Walorski (R-IN) on Sept. 17 unveiled a bipartisan bill that would ensure floor plan financing — a revolving line of credit that allows a borrower to obtain financing for retail goods and permits dealers to borrow against their retail inventory — includes the financing of all recreational vehicles (RVs).

“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 the lawmaker.

Rep. Walorski sponsored the Travel Trailer and Camper Tax Parity Act, H.R. 4349, with U.S. Rep. Stephanie Murphy (D-FL) 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,” Rep. 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.”

The congresswoman added that such technical corrections “are a normal part of the process when Congress enacts major reforms like the Tax Cuts and Jobs Act,” which was signed into law in December 2017 and inadvertently excluded non-motorized travel trailers from a deduction for interest paid on RV dealer inventory, only applying to RV motorhomes.