The $789.5 billion economic stimulus plan that President Barack Obama is
expected to sign this month will contain a tax break for new motorhome
buyers.
Under the stimulus deal, buyers of new cars, light trucks,
motorhomes and motorcycles will be able to deduct the state sales and
excise taxes from the purchase on their federal returns next year.
RVIA said that 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.
RVIA actively lobbied for the tax break, which will save
consumers an estimated $1.7 billion over 10 years. It was one of only
two so-called rifle-shot tax breaks supported by industry lobbies and
approved by the Senate; the other was for homebuyers.
