Travel Trailer and Camper Tax Parity Act

Bill: 119-s-1314
Sponsor: full_name: Sen. Ernst, Joni [R-IA]
Introduced: 2025-04-07
Policy area: Taxation
Latest action: action_date: 2025-04-07
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2025-04-07
action_desc: Introduced in Senate
text: <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&nbsp;business interest expenses to include interest on floor plan financing of certain non-motorized, towable campers and trailers.&nbsp;</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.&nbsp;</p>

tv_txt: II 119th CONGRESS 1st Session S. 1314 IN THE SENATE OF THE UNITED STATES April 7, 2025 Ms. Ernst (for herself, Mr. King , and Mr. Young ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to provide that floor plan financing includes the financing of certain trailers and campers.

1. Short title This Act may be cited as the Travel Trailer and Camper Tax Parity Act . 2. Floor plan financing applicable to certain trailers and campers (a) In general Section 163(j)(9)(C) of the Internal Revenue Code of 1986 is amended by adding at the end the following new flush sentence: Such term shall also include any trailer or camper which is designed to provide temporary living quarters for recreational, camping, or seasonal use and is designed to be towed by, or affixed to, a motor vehicle. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2024.