More Information on Mortgage Interest for RVs

More Information on Motorhome Sales Tax Deduction

Greetings,

Here is a quick update on what’s happening in Washington, as the industry works together to try to improve the RV market.

Congressman Joe Donnelly of Indiana (Elkhart) was the leader in getting the motorhome sales tax deduction included in the stimulus package. The American Recreation Coalition’s Executive Committee (RVIA’s Richard Coon, the National Marine Manufacturers Association’s Thom Dammrich, ARC’s Derrick Crandall, and myself) met with Donnelly this week. He is very tuned in to the White House. He rode on the President’s first Air Force One flight. As you may realize, that trip had an RV connection, because they flew -to Elkhart.  Donnelly is an industry supporter and, for a second termer, has a lot of “juice.”    

Donnelly understands our credit and banking issues. He says his face to face sessions with the President and with his Chief of Staff, Rahm Emmanuel, assure him that they understand it also. He believes the industry will be in a favorable position because President Obama has drawn a line in the sand regarding job losses in Elkhart. The administration will keep that on their radar screen and do whatever they can to fix the problem as a sign of recovery. Donnelly says they cannot afford to have the Elkhart situation worsen. 

Donnelly is working on getting the credit system to support RV loans both floorplan and retail. He has talked directly to several national bank CEOs and met with Federal Reserve officials this week. He promised to keep us informed.

The congressman also apologized for not getting the industry the full benefit from the sales tax credit. Donnelly said that at one time he had both motorized and towables in the stimulus bill. The Senate changed the language during the joint mark up of the bill so that it includes only motorized. He said he would lead a follow up effort to get towables included the next chance they get. He expects a second stimulus later in the Spring.

By the way, too few are celebrating our greatest (in my opinion) recent achievement in making RVs affordable. We retained the Mortgage Interest Deduction for RV loans. There was some doubt at one point. The auto industry wanted to include car loan interest as deductible and got rejected. We were holding our breath that the Congress would cut off our deduction. We kept it. That’s worth a lot more than sales tax credit. There is a move in Washington that could limit this deduction for certain income groups, so the industry must be vigilant in this area.

Thanks for your support.

Mike Molino, CAE
RVDA President

From Left to Right: RVIA President Richard Coon, Indiana Congressman Joe Donnelly, NMMA President Thom Dammrich, and RVDA President Mike Molino