Travel Trailer and Camper Tax Parity Act

2/7/2025, 4:23 AM

Travel Trailer and Camper Tax Parity Act

This bill expands the exclusion of interest on floor plan financing from the limit on the tax deduction for business interest expenses to include interest on floor plan financing of certain non-motorized, towable campers and trailers. 

Under current law, the tax deduction for business interest expenses is generally limited to 30% of adjusted taxable income. (Some exceptions apply.) However, under current law, interest on floor plan financing (financing used to acquire inventory for sale or lease) of motorized vehicles (e.g., self-propelled vehicles designed to transport people) is excluded from the limit on the tax deduction for business interest expenses.

Under the bill, the exclusion of interest on floor plan financing from the limit on the tax deduction for business interest expenses is expanded to include interest on floor plan financing of any camper or trailer designed to (1) provide temporary living quarters for recreational, camping, or seasonal use; and (2) be towed by, or affixed to, a motor vehicle. 

Bill 119 HR 332, also known as the Floor Plan Financing Act of 2021, aims to amend the Internal Revenue Code of 1986 to expand the definition of floor plan financing to include certain trailers and campers.

Floor plan financing is a type of financing used by retailers to purchase inventory, particularly in the automotive and recreational vehicle industries. This bill seeks to provide relief to businesses that sell trailers and campers by allowing them to qualify for floor plan financing, which can help them manage their inventory and cash flow more effectively.

By including trailers and campers in the definition of floor plan financing, this bill aims to support businesses in the recreational vehicle industry and promote economic growth in this sector. It is important to note that this bill does not provide any additional tax breaks or incentives, but rather expands the eligibility criteria for floor plan financing. Overall, Bill 119 HR 332 is a targeted piece of legislation that seeks to support businesses in the recreational vehicle industry by allowing them to access the same financing options as other retailers. It will be interesting to see how this bill progresses through Congress and what impact it may have on the industry if it is ultimately signed into law.
Congress
119
Number
HR - 332
Introduced on
2025-01-13
# Amendments
0
Sponsors
+5
Cosponsors
+5

Variations and Revisions

1/13/2025
Text
PDF
XML

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Travel Trailer and Camper Tax Parity Act

This bill expands the exclusion of interest on floor plan financing from the limit on the tax deduction for business interest expenses to include interest on floor plan financing of certain non-motorized, towable campers and trailers. 

Under current law, the tax deduction for business interest expenses is generally limited to 30% of adjusted taxable income. (Some exceptions apply.) However, under current law, interest on floor plan financing (financing used to acquire inventory for sale or lease) of motorized vehicles (e.g., self-propelled vehicles designed to transport people) is excluded from the limit on the tax deduction for business interest expenses.

Under the bill, the exclusion of interest on floor plan financing from the limit on the tax deduction for business interest expenses is expanded to include interest on floor plan financing of any camper or trailer designed to (1) provide temporary living quarters for recreational, camping, or seasonal use; and (2) be towed by, or affixed to, a motor vehicle. 

Bill 119 HR 332, also known as the Floor Plan Financing Act of 2021, aims to amend the Internal Revenue Code of 1986 to expand the definition of floor plan financing to include certain trailers and campers.

Floor plan financing is a type of financing used by retailers to purchase inventory, particularly in the automotive and recreational vehicle industries. This bill seeks to provide relief to businesses that sell trailers and campers by allowing them to qualify for floor plan financing, which can help them manage their inventory and cash flow more effectively.

By including trailers and campers in the definition of floor plan financing, this bill aims to support businesses in the recreational vehicle industry and promote economic growth in this sector. It is important to note that this bill does not provide any additional tax breaks or incentives, but rather expands the eligibility criteria for floor plan financing. Overall, Bill 119 HR 332 is a targeted piece of legislation that seeks to support businesses in the recreational vehicle industry by allowing them to access the same financing options as other retailers. It will be interesting to see how this bill progresses through Congress and what impact it may have on the industry if it is ultimately signed into law.
Alternative Names
Official Title as IntroducedTo amend the Internal Revenue Code of 1986 to provide that floor plan financing includes the financing of certain trailers and campers.

Comments

Related

Member:  
Mike Kelly
Member:  
Randy Feenstra
Member:  
Dina Titus
Member:  
Erin Houchin
Member:  
Rudy Yakym III
Member:  
Claudia Tenney
Committee:  
Ways and Means

Recent Activity

Latest Summary4/16/2025

Travel Trailer and Camper Tax Parity Act

This bill expands the exclusion of interest on floor plan financing from the limit on the tax deduction for business interest expenses to include interest on floor plan financing...

Latest Action1/13/2025
Referred to the House Committee on Ways and Means.