Lawmakers seek to extend RV tax credit
Two Indiana lawmakers have introduced legislation to extend for an additional two years the federal tax credit on the purchase of new motorhomes.
The new legislation introduced by Senator Evan Bayh and Congressman Joe Donnelly would make amounts paid on state sales and excise taxes deductible and could be claimed on up to $49,500 of the price of a new purchase. The tax relief could be claimed by both itemizers and non-itemizers, and they could save up to $1,100. It would also be expanded to include new towable RVs and slide-in campers.
"Making new RVs more affordable for two additional years will assist the RV industry in bouncing back from this recession," said Donnelly. "We are seeing positive results from last year's tax benefit, but we're not out of the woods yet. By continuing to provide tax relief to new customers, we will protect and create jobs in north central Indiana."
Donnelly and Bayh were successful in including a tax deduction for new motor homes in last year's American Recovery and Reinvestment Act, but the benefit expired at the end of 2009.
The new legislation is well-received by the RV industry as a way to help the recovery following the industry's worst year ever.
"It will improve the economic environment in our industry, stimulate RV sales and help speed the RV market's recovery," said Recreational Vehicle Industry Association president Richard Coon.