RV tax credit to expire
RV enthusiasts looking to buy a new RV or motorhome need to act fast in order to take advantage of the federal tax credit.
In February, President Obama signed the $789 billion federal economic stimulus package signed into law. It includes a tax provision for motorhomes that is now set to expire at the end of the year.
The package allows for sales and excise tax deductions for new purchases of qualified motor vehicles, including motorhomes. The deductions are attributable to taxes applying to the first $49,500 of the purchase price.
Individuals with an adjusted gross income of up to $125,000 and joint filers with an adjusted gross income of up to $250,000 are eligible for the deduction.
The Recreational Vehicle Industry Association has been working with manufacturers and dealers to educate consumers about the benefits of buying a new RV with the tax credit prior to December 31.
Consumers need to make sure their purchase is eligible for the credit, however. According to Examiner.com, language was stripped from the bill that would have extended the tax break to non-motorized trailers and fifth wheels, which make up about 85 percent of the RV industry's annual sales.