S.1314 - Travel Trailer and Camper Tax Parity Act (119th Congress)
Summary
S.1314, the "Travel Trailer and Camper Tax Parity Act," seeks to amend the Internal Revenue Code of 1986 to include financing for certain trailers and campers under floor plan financing. This would allow businesses that finance these types of recreational vehicles to deduct interest expenses, similar to how they do for other types of vehicles. The bill was introduced in the Senate on April 7, 2025, and referred to the Committee on Finance.
Expected Effects
The primary effect of this bill would be to provide a tax benefit to businesses that finance travel trailers and campers. This could potentially lower the cost of financing for consumers purchasing these vehicles. It may also stimulate sales in the RV industry.
Potential Benefits
- Could reduce financing costs for consumers purchasing travel trailers and campers.
- May stimulate growth in the RV industry.
- Simplifies tax treatment for businesses involved in floor plan financing.
- Could lead to increased sales and production of travel trailers and campers.
- Potentially creates more competitive financing options for consumers.
Most Benefited Areas:
Potential Disadvantages
- May slightly reduce government tax revenue.
- The benefit primarily accrues to businesses and consumers in a specific industry, rather than the broader population.
- Could incentivize the purchase of recreational vehicles, potentially increasing environmental impact.
- The definition of "trailer or camper" might need clarification to avoid unintended loopholes.
- The overall economic impact is likely to be small.
Most Disadvantaged Areas:
Constitutional Alignment
This bill appears to align with the general powers granted to Congress under Article I, Section 8 of the Constitution, which includes the power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States. The bill involves adjustments to the tax code, which falls under Congress's purview. There are no apparent conflicts with specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).