PHIL INGRASSIA

EXPLORE Act (Expanding Public Lands Outdoor Recreation Experiences Act) - Legislative Summary The EXPLORE Act (H.R. 6492) is a bipartisan, comprehensive outdoor recreation package designed to improve access to and infrastructure on public lands and waters. The legislation includes provisions to modernize campground facilities, streamline recreational permitting processes, expand digital tools for visitors, support underserved and veteran communities, and invest in sustainable recreation-based economic development in gateway communities. The EXPLORE Act was introduced in the House by Representatives Bruce Westerman (R-AR) and Raul Grijalva (D-AZ). It passed the House with unanimous support in April 2024 and was approved by the Senate in December 2024. The bill was signed into law by President Biden on January 4, 2025, becoming Public Law No: 118-234. This law represents a major legislative achievement for the outdoor recreation sector, enhancing public access, economic opportunity, and infrastructure resilience across the nations federal land systems.

Travel Trailer and Camper Tax Parity Act In the 118th Congress, Representatives Rudy Yakym (R-IN) and Dina Titus (D-NV) introduced the Travel Trailer and Camper Tax Parity Act (H.R. 332), a bipartisan bill aimed at correcting a longstanding discrepancy in the treatment of floor plan interest deductions for RV dealers. Under current federal tax law, motorhomes qualify for the full deduction of floor plan interest as motor vehicles, while towable RVs (such as travel trailers and campers) do not-limiting the deduction for dealers with more than $29 million in annual gross receipts. H.R. 332 would amend the Internal Revenue Code to explicitly include towable recreational vehicles in the definition of motor vehicle for purposes of the floor plan financing interest deduction. This change would provide tax parity between motorized and towable RV inventory, easing the financial burden on RV dealers and helping level the playing field across the industry. The bill has been referred to the House Committee on Ways and Means and is supported by RVDA as a targeted, industry-specific correction to a technical oversight from the 2017 Tax Cuts and Jobs Act.

RVDA supports H.R. 3624 & S. 3345- the Travel Trailer and Camper Tax Parity Act. Current disparity: Under the current law, the tax exemption for interest paid on dealer inventory applies only to RV motorhomes, leaving RV travel trailers at a disadvantage. While motorhome interest remains fully deductible, travel trailers are now limited to a 30 percent deduction for dealers with $25 million in annual sales. This exclusion affects approximately 85% of RVs sold, which are non-motorized travel trailers, creating an unfair and complicated accounting situation for RV dealers. Impact on dealers: According the U.S. Census Bureau, an estimated 550 U.S. RV dealers with more than 25,000 employees are impacted by this disparity. In 2023, its estimated that these dealers will pay an additional $100 million in taxes due to the inventory interest deduction limitation. This puts these dealers at a competitive disadvantage compared to other recreation equipment dealers, such as powersports and marine dealers, who can fully deduct interest on their inventory floor plans. Impact on consumers: Retail RV prices have increased by 15% to 30% or more depending on the type of unit since 2020. While not all the increase can be attributed to higher taxes paid by impacted dealers, a higher, disparate tax burden on these businesses contributes to the inflation and the increase in RV prices as indicated in the Feds RV Dealer Producer Price Index. Bipartisan support: There is bipartisan support in both the House and Senate for legislation to address this issue. Representatives Rudy Yakym and Dina Titus, Co-Chairs of the House RV Caucus, have introduced H.R. 3624 to ensure that towable RVs are included in the floor plan interest financing deductibility provisions. Last Congress, Senator Joni Ernst and Senator Angus King introduced a companion measure, and we expect reintroduction of the legislation in the Senate in the coming weeks. Equity in financing: RV trailers are considered motor vehicles under state and federal motor vehicle laws. They are designed to provide temporary living quarters for short-term camping and comply with applicable Federal Motor Vehicle Safety Standards for motor vehicle regulations. Therefore, it is essential to create equity in the financing of RV inventory by including RV trailers in the deductibility provisions. Initial Intent of legislation: Both House and Senate tax legislation in 2017 intended to include RV trailers as motor vehicles in the floor plan interest exclusion. The consolidation of language aimed to simplify the provision but unintentionally excluded RV trailers due to confusion about the different types of RVs. Reinstating the original intent will rectify this unintended consequence. Requested Action: Support the Travel Trailer and Camper Tax Parity Act (HR 3624), legislation that ensures towable RVs are included in the floor plan interest financing deductibility provisions under IRS Code 163(j). By correcting this discrepancy, we can promote fairness, strengthen the competitiveness of RV trailer dealers, and support the growth of the RV industry.

RVDA supports H.R. 3624 - the Travel Trailer and Camper Tax Parity Act. U.S. Senators Joni Ernst (R-IA) and Angus King (I-ME) have introduced a companion bill, S.3345 Current disparity: Under the current law, the tax exemption for interest paid on dealer inventory applies only to RV motorhomes, leaving RV travel trailers at a disadvantage. While motorhome interest remains fully deductible, travel trailers are now limited to a 30 percent deduction for dealers with $25 million in annual sales. This exclusion affects approximately 85% of RVs sold, which are non-motorized travel trailers, creating an unfair and complicated accounting situation for RV dealers. Impact on dealers: According the U.S. Census Bureau, an estimated 550 U.S. RV dealers with more than 25,000 employees are impacted by this disparity. In 2023, its estimated that these dealers will pay an additional $100 million in taxes due to the inventory interest deduction limitation. This puts these dealers at a competitive disadvantage compared to other recreation equipment dealers, such as powersports and marine dealers, who can fully deduct interest on their inventory floor plans. Impact on consumers: Retail RV prices have increased by 15% to 30% or more depending on the type of unit since 2020. While not all the increase can be attributed to higher taxes paid by impacted dealers, a higher, disparate tax burden on these businesses contributes to the inflation and the increase in RV prices as indicated in the Feds RV Dealer Producer Price Index. Bipartisan support: There is bipartisan support in both the House and Senate for legislation to address this issue. Representatives Rudy Yakym and Dina Titus, Co-Chairs of the House RV Caucus, have introduced H.R. 3624 to ensure that towable RVs are included in the floor plan interest financing deductibility provisions. Last Congress, Senator Joni Ernst and Senator Angus King introduced a companion measure, and we expect reintroduction of the legislation in the Senate in the coming weeks. Equity in financing: RV trailers are considered motor vehicles under state and federal motor vehicle laws. They are designed to provide temporary living quarters for short-term camping and comply with applicable Federal Motor Vehicle Safety Standards for motor vehicle regulations. Therefore, it is essential to create equity in the financing of RV inventory by including RV trailers in the deductibility provisions. Initial Intent of legislation: Both House and Senate tax legislation in 2017 intended to include RV trailers as motor vehicles in the floor plan interest exclusion. The consolidation of language aimed to simplify the provision but unintentionally excluded RV trailers due to confusion about the different types of RVs. Reinstating the original intent will rectify this unintended consequence. Requested Action: Support the Travel Trailer and Camper Tax Parity Act (HR 3624), legislation that ensures towable RVs are included in the floor plan interest financing deductibility provisions under IRS Code 163(j). By correcting this discrepancy, we can promote fairness, strengthen the competitiveness of RV trailer dealers, and support the growth of the RV industry.

The EXPLORE Act The EXPLORE Act is bipartisan legislation that will help ensure that Americans continue to enjoy the benefits of recreating outdoors for generations to come. The act will improve and modernize recreation infrastructure on public lands to support everyone who enjoys the great outdoors, including the growing number of RV travelers. Bill sponsors Congressman Bruce Westerman (R-AR) and Raul Grijalva (D-AZ), this legislation will provide federal agencies with new tools they need to address recreation management and help more Americans reap the benefits of time spent outside, all while protecting the precious public lands and waters that make it all possible.

President Biden signed the bipartisan EXPLORE Act into law on January 4, 2025, marking a historic milestone as the first-ever legislative package focused on outdoor recreation. The Act supports local and national economies, enhances access to outdoor spaces-especially for underserved communities-and modernizes policies to strengthen recreation businesses, all without taxpayer cost. Key Highlights: Economic Impact: Builds on the $1.2 trillion outdoor recreation economy, advancing the progress of the Great American Outdoors Act of 2020. Access and Equity: Improves infrastructure and expands outdoor opportunities, prioritizing accessibility for underserved communities. Industry Growth: Bolsters recreation-focused businesses that connect people to nature, fostering sustainable innovation. Why It Matters: The EXPLORE Act strengthens the outdoor recreation economy while ensuring equitable and sustainable access to nature for all Americans. This legislation sets the stage for continued growth in the industry and reflects the success of collaborative advocacy efforts. Advocacy Efforts: The RV Dealers Association (RVDA) played a critical role in promoting and shaping the Act, working with Congress and industry partners to secure this transformative policy change.

RECREATION VEHICLE DEALERS ASSOCIATION OF NORTH AMERICA

RECREATION VEHICLE DEALERS ASSOCIATION OF NORTH AMERICA

RECREATION VEHICLE DEALERS ASSOCIATION OF NORTH AMERICA

RECREATION VEHICLE DEALERS ASSOCIATION OF NORTH AMERICA

RECREATION VEHICLE DEALERS ASSOCIATION OF NORTH AMERICA

RECREATION VEHICLE DEALERS ASSOCIATION OF NORTH AMERICA