Officials seek extension for motorhome tax cut

Economists and industry experts say the federal tax cut on new RV purchases has contributed to the industry's recovery and now lawmakers are looking to extend the benefit.

According to RV Business, U.S. Representative Joe Donnelly, a democrat from Indiana, has introduced legislation to extend the expiring tax deduction for state and local sales or excise taxes on the purchase of new motorhomes.

"A strong recreational vehicle industry is crucial to north central Indiana, and especially Elkhart County," Donnelly said in a news release. "Despite tumultuous times for RV makers, sales have begun to rebound and local companies are starting to hire again. I think the deduction has played a role in the comeback of the industry. I introduced this legislation to help continue the trend in rising RV purchases and new production."

Donnelly, along with Senator Evan Bayh, introduced the original legislation that included a tax break on new RV purchases as part of the American Recovery and Reinvestment Act. The benefit currently covers vehicles purchased during 2009 only.

The initial signs of recovery for the RV industry are believed to signal a more widespread economic recovery, according to economists.