Floor plan financing, a type of short-term loan that allows businesses to purchase inventory and pay for items as they sell them, would also include the financing of certain trailers and campers under bipartisan legislation proposed by U.S. Rep. Rudy Yakym (R-IN).
The congressman on Jan. 13 sponsored the Travel Trailer and Camper Tax Parity Act, H.R. 332, which is cosponsored by U.S. Rep. Dina Titus (D-NV).
“Indiana’s Second District is the home of the ‘RV Capital of the World,’ an essential part of our local economy,” Rep. Yakym said on Tuesday. “I am proud to reintroduce this sensible and bipartisan legislative solution along with Congresswoman Titus that will support the continued growth of the RV industry and ensure Americans can enjoy the natural beauty of our nation through RV travel and outdoor adventures for generations to come.”
Specifically, the bill would make a technical fix to the 2017 Tax Cuts and Jobs Act so that RV dealers can fully deduct the interest on their floor plan financing for all the RVs they sell, including non-motorized towable trailers, which account for 88 percent of RV sales, according to a bill summary provided by Rep. Yakym’s staff.
The RV Industry Association endorsed the measure, which has been referred to the U.S. House Ways and Means Committee for consideration.
“Many families and tourists across the country find the best way to explore our nation’s national parks and beautiful natural landscapes is from an RV,” said Rep. Titus. “This bipartisan legislation would help RVs stay competitive with other elements of the recreation industry and allow even more people to explore our country in this unique way.”