S. 1314 · Where this bill is now
In committee
Introduced in the Senate, Apr 7, 2025
What this bill does
In plain words · AI-written from the official summaryCamper and trailer financing gets tax break
Right now, businesses that sell or lease motorized vehicles get a special tax break on certain financing costs. This bill would give that same break to businesses that sell or lease non-motorized campers and trailers that are designed to be towed behind a vehicle. Specifically, it would let these businesses deduct more interest costs on the money they borrow to buy inventory.
How it affects you
If you own or work at a business that sells or rents travel trailers and campers, this could lower your tax bill by letting you deduct more financing costs. For most other people, this change wouldn't directly affect you.
Read the official summary (Introduced in Senate, Apr 7, 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 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.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 1314
A BILL
Travel Trailer and Camper Tax Parity Act
Sponsor: Sen. Joni Ernst (R-IA) · Introduced Apr 7, 2025 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Apr 7, 2025: “Read twice and referred to the Committee on Finance.”