Travel Trailer and Camper Tax Parity Provisions

, ,

Special Tax Update:  Tax Legislation Includes Travel Trailer Floor Plan Tax Fix

Thanks to the efforts of RVDA, RVIA, dealers, and other industry stakeholders, the Reconciliation Bill included an amendment to Internal Revenue Code §163(j). This amendment offers meaningful relief to RV dealerships engaged in the sale of certain trailers and campers. Specifically, the bill expands the definition of floor plan financing indebtedness to include debt used to finance trailers or campers that:

  • Are designed to provide temporary living quarters for recreational, camping, or seasonal use, and

  • Are designed to be towed by or affixed to a motor vehicle.

This change is significant for dealerships that sell towable RVs, such as fifth-wheel trailers and travel campers, which were previously excluded from the floor plan financing exception unless arguably part of a motor vehicle package. The update ensures that interest on qualifying inventory financing will be fully deductible and not subject to the business interest limitation rules under §163(j).

The amendment applies to tax years beginning after December 31, 2024, with the Treasury granted authority to issue rules for short tax years that span the enactment date

MORE INFORMATION

Tax legislation: The provision was championed by Rep. Rudy Yakym (IN), a member of the Ways & Means Committee. In the Senate, Senators Joni Ernst (IA), Todd Young (IN), and Jim Banks (IN) supported companion legislation to ensure RV dealers receive fair and consistent tax treatment.  This issue was one of the top legislative priorities for RVDA and RVIA.  

MORE on this issue from CPA firms:

Please contact your accountant/CPA for additional information.  

For individual messages to Congress on other issues use the links below. 

Contact Congress

To contact your U.S. Senators click here.

To contact your U.S. House Representative click here .

To get information on the impact of the RV industry in your state click here.