This bill expands tax deductions for floor plan financing interest to include towable campers and trailers, not just motorized vehicles. Dealers financing inventory of travel trailers and campers would get the same tax treatment as car dealers for their inventory loans.
Latest Action
Referred to the House Committee on Ways and Means.
AI Summary
Plain-English explanation of this bill
This bill expands tax deductions for floor plan financing interest to include towable campers and trailers, not just motorized vehicles. Dealers financing inventory of travel trailers and campers would get the same tax treatment as car dealers for their inventory loans.
Last updated: 1/5/2026
Official Summary
Congressional Research Service summary
<p><strong>Travel Trailer and Camper Tax Parity Act</strong></p><p>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. </p><p>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.</p><p>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. </p>
Key Points
Main provisions of the bill
Extends floor plan financing tax benefits to towable campers
Includes travel trailers designed for temporary living
Matches tax treatment available for motorized vehicle dealers
Excludes interest from business interest expense limits
Helps RV and trailer dealers finance inventory
How This Impacts Americans
Potential effects on citizens and communities
RV and trailer dealerships would get tax relief on financing costs for their inventory of towable campers and trailers. This could help dealers keep more stock on their lots and potentially benefit buyers looking for these vehicles.
Policy Areas
Primary Policy Area
Taxation
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
332, 119th Congress (2025). "Travel Trailer and Camper Tax Parity Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-332
