Picture yourself cruising down a wide-open highway in a shiny RV, chasing sunsets and new adventures. For RV dealers, this dream is their business, connecting wanderlust-driven customers with the perfect vehicle for their next journey.
The RV industry is a juggernaut, pumping $140 billion into the U.S. economy, supporting nearly 680,000 jobs, and generating over $48 billion in wages, according to the RVIA. Running a dealership is not just about showcasing gleaming motorhomes. Running the business is a high-stakes game shaped by taxes, regulations and economic trends.
Enter the One Big Beautiful Bill Act (OBBBA). This 870-page powerhouse is a significant change for RV dealers, delivering a slew of benefits that rev up profitability while throwing in a few challenges to navigate.
Let’s hit the road and explore how the OBBBA supercharges RV dealers with tax breaks, investment incentives, and economic tailwinds.
What’s the One Big Beautiful Bill Act?
The OBBBA, or H.R. 1, is a massive tax and economic reform package that builds on the 2017 Tax Cuts and Jobs Act (TCJA) while adding new perks and phasing out others, like electric vehicle (EV) tax credits.
Passed with a razor-thin 218-214 House vote, this bill reshapes the landscape for businesses and consumers alike, affecting everything from personal taxes to energy policy. For RV dealers, the bill is like a fully loaded RV packed with tools to boost operations—think floorplan interest deductions, bonus depreciation, small business tax relief and consumer incentives.
Although there are some bumps in the road, the OBBBA’s benefits give dealers plenty of fuel to drive growth.
Let’s dive into the ways this act puts RV dealers in the fast lane.
Floorplan Interest Deduction
RV dealerships are all about the lot—rows of motorhomes, travel trailers, and fifth wheels waiting for eager buyers. Stocking the inventory requires floorplan loans, which come with hefty interest costs.
Before the OBBBA, dealers could fully deduct interest on loans for motorized RVs as floorplan interest, but not for towable trailers or campers, a major headache, because towables dominate the market. The OBBBA changes that by redefining “motor vehicle” to include towable trailers and campers, making interest on those loans fully deductible as floorplan interest starting in 2025.
This is a huge win. The new deduction lowers dealers’ taxable income, freeing up cash to stock more inventory, upgrade showrooms or ramp up marketing.
For example, a dealer financing $1 million in towable trailers could save thousands in taxes, making it easier to offer competitive prices or invest in growth. The benefit comes with strings attached, though, as deducting floorplan interest can eliminate the opportunity to take advantage of the new bonus depreciation wins (more on this later).
The OBBBA also tweaks Section 163(j) interest limitations, excluding depreciation and amortization from income calculations through 2029, giving dealers even more breathing room to deduct non-floorplan interest such as acquisition interest and interest on leasehold improvements. The result is like swapping a heavy trailer for a lightweight model—suddenly, the journey feels a lot smoother but requires careful planning to assemble all the tax law components for maximum benefit.
Bonus Depreciation
The OBBBA brings back a crowd-pleaser: 100% bonus depreciation for qualified property, such as service equipment, delivery trucks or facility upgrades, starting Jan. 19, 2025.
Unlike the previous phased-down depreciation (40% in 2025), the OBBBA makes the 100% depreciation permanent, enabling dealers to write off these costs immediately. This is a lifeline for small and mid-sized dealerships operating on tight margins.
Note, though, that on the surface, deducting floorplan interest may disqualify dealers from bonus depreciation. However, strategic planning may allow for the best of all worlds.
Have a rental fleet? This is a big win once again!
Bonus depreciation means a $100,000 investment in a new service bay or high-tech diagnostic tools can be fully deducted in one year, boosting cash flow. Dealers can modernize facilities, expand service offerings or even add customer-friendly amenities such as RV rental programs.
The catch is that many states do not align with federal depreciation rules, so dealers need a savvy accountant to maximize savings. The benefit is like getting a turbo boost for your business—full speed ahead, with a few local speed bumps.
Small Business Tax Relief
The OBBBA doubles down on small-business support, providing RV dealers—many of whom operate as small or mid-sized enterprises—new tax breaks to streamline operations.
The bill increases the Section 179 expensing limit to $1.29 million (from $1 million in 2024) for equipment and property, with a phase-out threshold of $3.22 million. The change means dealers can immediately deduct the cost of items including computers, point-of-sale systems or even service vehicles, reducing their tax burden and freeing up capital.
Additionally, the OBBBA makes the Qualified Business Income Deduction (Section 199A) permanent. The change is a big win for RV dealers, locking down a 20% deduction on flow-through income from the dealership and related businesses. The key to the deduction is strategic analysis of owners’ W-2 wages versus distributions, beneficial grouping of related business income, such as F&I over-remits, or even self-rental income.
Finally, Last-in-First-Out valuation (LIFO), an old friend in the industry, continues to be beneficial. Rising costs due to inflation and/or tariffs continue to support a case for considering the LIFO method of valuing your new and parts inventory.
A reminder, though, that this does not change what RV you sell or how you stock inventory. The valuation is simply an accounting entry at year’s end.
Consumer Tax Deductions
The OBBBA introduces a temporary tax deduction of up to $10,000 annually for interest on loans for U.S.-assembled vehicles, such as cars, SUVs or pickup trucks, from 2025 to 2028. Available to itemizing and non-itemizing taxpayers, the deduction phases out for individuals earning over $100,000 ($200,000 for joint filers).
Although RVs are not explicitly included, this deduction is a sneaky win for dealers.
Many RV buyers need a tow vehicle to haul their trailers, and the tax break on loans for U.S.-made pickups or SUVs could free up cash for an RV purchase. For example, a buyer saving $2,000 on their truck loan interest might upgrade to a pricier fifth-wheel or splurge on accessories.
Dealers can capitalize by bundling RV and tow vehicle financing deals, marketing the tax savings to attract customers. The downside is that the deduction excludes used vehicles and imported models, which could limit its appeal for budget-conscious buyers. Still, the deduction is like offering a free campsite pass with every RV purchase; a little incentive goes a long way.
Energy Policy Changes
The OBBBA’s energy provisions are a hidden gem for RV dealers. By cutting royalties on oil and gas extraction and relaxing pollution controls, the bill could lower fuel prices, a big deal for RV owners who rely on gas-powered vehicles.
Cheaper fuel makes RV travel more affordable, encouraging more trips and boosting new RV demand. RVIA’s Go RVing campaign notes that RVing is a cost-effective way to travel, and lower fuel costs could draw in new buyers.
For dealers, demand translates to more showroom traffic and higher sales. They can capitalize on this trend by promoting gas-powered RVs or offering fuel-efficient models to maximize savings. Eco-conscious buyers might hesitate due to the bill’s clean energy program rollback, so dealers should highlight hybrid options to keep them hooked.
The changes are like a tailwind on a long drive—dealers can ride the momentum to boost sales.
Economic Stability
The OBBBA locks in the TCJA’s lower individual tax rates and higher standard deductions, putting more money in consumers’ pockets. The news is great for RV dealers, as it fuels discretionary spending on big-ticket items like RVs.
With younger buyers driving demand (the RVIA reports a surge in 18–54-year-old RV owners), extra cash could mean more families hitting the lot to buy their dream RV. The bill also reduces Consumer Financial Protection Bureau funding by nearly half, potentially loosening oversight on loan financing. RV buyers may find financing easier, but dealers should be cautious of risky lending practices that could harm future sales.
These economic tailwinds give dealers a chance to shine, whether by offering flexible financing or targeting younger buyers with digital marketing campaigns.
The tailwinds are like a clear, sunny day on the road—perfect conditions to drive sales.
How Dealers Can Hit the Gas
The OBBBA serves as a treasure map for RV dealers, providing numerous opportunities to boost profits, drive growth and enhance cash flow. However, do not merely select tax breaks like items from a menu.
Success is derived from assembling benefits like a top-tier RV, where every part fits together for a smooth ride.
Like assembling an RV, your tax strategy must coordinate each part—floorplan interest with bonus depreciation, bonus depreciation with the Qualified Business Income Deduction and LIFO with bonus depreciation. A multi-year tax strategy will avoid missteps, such as overloading one part and throwing the whole vehicle off balance, and ensure you are taking advantage of all the tax benefits available to you.
The goal is to minimize your tax liability year after year.
Conclusion: Full Speed Ahead
The One Big Beautiful Bill Act is like a fully equipped RV for dealers, loaded with benefits to accelerate growth. From floorplan interest deductions to bonus depreciation, small business tax relief, consumer incentives and lower fuel costs, the OBBBA gives dealers the tools to thrive.
Sure, there are challenges, but savvy dealers can steer around them with smart strategies. By embracing these opportunities, RV dealers can keep their lots buzzing, their customers happy and the open road calling for a new generation of adventurers.
Buckle up—it is going to be a wild ride.
Jane Saxon is the managing director at CBIZ. Her focus is serving clients in the RV, automotive, powersport, boat, ag equipment and construction equipment industries.
