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Travel Trailer and Camper Tax Parity Act
2/7/2025, 4:23 AM
Summary of Bill HR 332
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.
Congressional Summary of HR 332
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.
