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Stimulus
package includes a
provision to
specifically help the RV
industry
Motorhomes are
included in a tax
provision that allows a
portion of the sales or
excise tax paid on the
purchase of a new
motorhome to be
deducted...
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2009 Winnebago Vectra (see review)
RV industry receiving help from the stimulus legislation.
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According
to the RVIA, the final version of the $789 billion
economic stimulus package includes a provision to
specifically help the RV industry.
Motorhomes are included in a
tax provision that allows a portion of the sales or
excise tax paid on the purchase of a new motorhome
to be deducted. The deduction is 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 inclusion in the legislation of a sales or excise tax deduction for motorhomes is a significant accomplishment for the RV industry, particularly since there were no RV sales incentives in either the House or Senate versions of the stimulus bill.
RVIA Vice President of Government Affairs
Dianne Farrell said, “the RV industry is especially thankful to
Senator Evan Bayh (D-IN), Congressman Joe Donnelly (D-IN), and
Senator Ron Wyden (D-OR) who, along with their staffs, have
worked tirelessly over the past several weeks to ensure that the
RV industry is included in the stimulus legislation. Their
efforts on behalf of their constituents will make a real
difference for the industry.”
She added, “RVIA worked with government
affairs consultants, member companies, state RV associations,
RVDA and RV dealers to ensure that the RV industry received help
from the economic stimulus package. We are thankful to all of
our partners for their commitment to this effort.”
TALF Funding Increased
In another positive development, RVIA succeeded in having RV
consumer loans and dealer floor plan loans added to the Term
Asset-Backed Securities Loan Facility (TALF). RVIA argued to
policy makers that the lack of credit was reaching a critical
stage and noted that if consumers and dealers can't borrow money
to buy product, manufacturers will plunge into further financial
difficulty.
The Federal Reserve Board's February 6 announcement to include
RV loans will stimulate new lending to RV buyers and dealers and
was a significant industry victory. The government has announced
that they will purchase securitized RV loans along with car
loans, student loans and other consumer loans. Financial
institutions will be encouraged to make RV floorplan and
consumer loans because they can be assured a secondary market
exists for those loans. Thus, this TALF facility will attract
investors back into the securities market and will stimulate
demand for new loans to be securitized.
Also of interest, on February 10 the Federal Reserve Board
announced a substantial expansion in the TALF program. The
expansion could increase the size of TALF from $200 billion to
as much as $1 trillion. Again, Joe Donnelly was a tireless
champion for the industry, sending a letter with Congressman
Mark Souder (R-IN) requesting the inclusion of RV loans in the
the TALF. Congressman Peter DeFazio also led an Oregon
delegation letter to the Treasury Department and FED making the
same request. And Mr. Donnelly and DeFazio also added language
to a House banking bill that, while ultimately did not become
law, helped pave the way for the FED including RV loans in the
TALF.
Motorhomes are
included in a tax provision
that allows a portion of the
sales or excise tax paid on
the purchase of a new
motorhome to be deducted...
What do you think?
Read RoTi readers' comments
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opinion ... |
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