The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.
Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .
Fri Dec 22, 2017
President Donald Trump has signed the Tax Cuts and Jobs Act. The bill quickly made its way through both the U.S. House and Senate with limited amendments.
Here are some highlights of interest to RV dealers, as put forward by RVDA:
Establishes a top rate of 21 percent for corporations starting in 2018 and 20 percent for "qualified business income" of certain small businesses that pass on profits to owners and are taxed at individual tax rates.
Mortgage Interest Deduction
Allows mortgage interest deduction on loans totaling up to $750,000 for primary residence and second homes, including RVs.
Business Interest Expense
For business with more than $25 million in gross receipts, net interest deduction is limited to 30 percent of earnings before interest, taxes, depreciation, amortization and depletion, through 2021. The law allows full deduction of all floor plan financing interest expenses for motorhomes.
Travel trailer floor plan financing expenses would be subject to the 30 percent limit. RVDA and its allies will be working to adjust this provision in 2018. Again, small businesses under $25 million in gross receipts are exempt from the interest deduction limitations.
Increases exemption to $10 million ($20 million for a surviving spouse); indexed for inflation; expires in 2025.
This summary is provided to dealers as an informational overview of the tax reform law, not as tax advice. Consult your tax advisor to address specific tax advice questions. RVDA will provide additional information as it becomes available.