Page 3 - September-October 2025

TRAILERTALK
NTDA Commercial Semi-Trailer Advocacy PAC

Seeking Co-Sponsors for Floor Plan Tax Bill

The National Trailer Dealers Association’s (NTDA) Commercial Semi- the interest on loans used to purchase inventory by limiting the
Trailer Advocacy PAC is currently seeking a Democratic or Republican deduction to a 30% cap on adjusted taxable income (ATI). In that same
co-sponsor(s) for its bill to amend the Internal Revenue Code of legislation, an exclusion was made for motor vehicles but the definition
1986 to apply the floor plan financing interest rules to semi-trailers. of “motor vehicle” was changed to include only self-propelled vehicles
Congressman Blake Moore (R-UT) has agreed to sponsor the bill. — vehicles with an engine — thus excluding semi-trailers (and other
non-self-propelled vehicles). Congress recognized this inequity by
To ensure a non-partisan bill, Democratic co-sponsors are sought. If you adding recreational vehicles and campers to the definition of motor
have a relationship with a Democratic or Republican representative vehicles under the recently enacted PL 119-21. As a result, semi-
and are willing to reach out to your representative on behalf of the trailers are now the only motor vehicle not excluded from the 30% cap
NTDA, please contact Association President Gwendolyn Brown at (810) on interest deductions. And yet, semi-trailer dealers have the same
844-3124 or email gwen@ntda.org. Talking points as well as a copy of reliance on floor plan financing as automobile and truck dealers —
the bill can be provided along with other background information. and now RV and camper dealers – to finance capital for inventory and
sales. Adding to this inequity is the fact that trailer dealerships have
The 2017 Tax Cut and Jobs Act and subsequent definitional alterations the potential for owing federal taxes EVEN IN YEARS WHEN THEY HAVE
made a significant change in the ability of trailer dealerships to deduct LOST MONEY and have no taxable income.

119TH CONGRESS

1ST SESSION H. R. ___________
To amend the Internal Revenue Code of 1986 to apply the floor plan
financing interest rules to semitrailers.
IN THE HOUSE OF REPRESENTATIVES
Mr. MOORE of Utah introduced the following bill; which was referred to the
Committee on __________________________________
A BILL

To amend the Internal Revenue Code of 1986 to apply
the floor plan financing interest rules to semitrailers.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. APPLICATION OF FLOOR PLAN FINANCING IN-
4 TEREST RULES TO SEMITRAILERS.
5 (a) IN GENERAL.—Section 163(j)(9)(C) of the Inter-
6 nal Revenue Code of 1986 is amended by adding at the
7 end the following: ‘‘Such term shall further include any
8 truck trailer or semitrailer chassis or truck trailer or
9 semitrailer bodies (within the meaning of subparagraphs
1 (C) and (D) of section 4051(a)(1), but without regard to
2 whether the acquisition is the first retail sale of such prop-
erty) which are not described in section 4051(a)(3).’’.
4 (b) EFFECTIVE DATE.—The amendment made by
5 this section shall apply to taxable years beginning after
6 the date of the enactment of this Act.

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