U.S. Representative Jackie Walorski (R-Ind.) Thursday applauded House passage of legislation making important tax-related changes, including an overhaul of the Internal Revenue Service (IRS) and a commonsense fix Walorski championed to provide fair tax treatment for the recreational vehicle (RV) industry.
“In order to continue building on our nation’s economic momentum, we need to work constantly to ensure our tax code is working for the American people,” Congresswoman Walorski said. “This critical legislation modernizes the IRS so it always puts service to the taxpayer first. It gives families and businesses better tools to boost saving for the future and for retirement. It delays the job-killing medical device tax and other costly taxes like the health insurance tax and the ‘Cadillac tax.’ And it makes a small but critical fix to ensure certain types of RVs don’t wrongly face different treatment under a provision in the tax code.”
The House passed an amended version of H.R. 88, the Retirement, Savings, and Other Tax Relief Act, by a vote of 220 to 183. The legislation included a fix to a provision of the Tax Cuts and Jobs Act, which was signed into law at the end of 2017, that inadvertently excluded towable RVs and campers from the definition of Motor Vehicle.
Walorski, who is co-chair of the House RV Caucus, worked to ensure the fix to this tax glitch was included in H.R. 88. The error made non-motorized RVs ineligible for floor plan interest deductibility, adding complexity for RV dealers and retailers and preventing them from obtaining financing needed to purchase new inventory. Towable RVs account for approximately 90 percent of RV sales.
In addition, the legislation:
- Helps businesses provide retirement savings plans to employees and helps families start saving for the future earlier.
- Modernizes the IRS and makes taxpayer service the focus of the agency.
- Delays the job-killing medical device tax for five years, the health insurance tax for two years, and the “Cadillac tax” for one year.
- Makes other important technical corrections to the Tax Cuts and Jobs Act.