Important RVDA Legislative Alert: Ask Congress to Restore Floor
for Certain RV Trailers
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.
Legislation to correct this unintended oversight, the Travel Trailer and Camper Technical Corrections Act, has been included in Chairman Brady's year-end tax bill, H.R. 88, as Section 504. Please contact your Members of Congress today and ask them to offer an amendment to add this important provision to the Continuing Resolution and bring critically needed clarity to this issue for RV dealers.
For more information and to contact your members of
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