A bipartisan bill introduced in the U.S. House of Representatives would extend a key tax benefit to semi-trailer dealers, addressing what industry groups say is a long-standing competitive disadvantage.
Reps. Blake Moore and Norma Torres have introduced the Semi-Trailer Tax Parity Act (H.R. 7944), which would allow trailer dealerships to fully deduct interest on floor plan financing — a provision already available to motor vehicle and RV dealers.
The bill would amend Internal Revenue Code Section 163(j) to include truck trailers, semi-trailer chassis and bodies in the definition of “motor vehicle,” but only for the purposes of the tax treatment.
Industry stakeholders say the current exclusion has real financial consequences.
“Under current law, semi-trailer dealers can face tax liability even in unprofitable years,” said Paul Christenson of North American Trailer. “This legislation will provide much-needed relief and parity.”
The National Trailer Dealers Association, which has been advocating for the change through its Commercial Semi-Trailer Advocacy PAC, said the bill would improve cash flow and allow dealers to reinvest more into inventory.
“Achieving floor plan tax parity is critical to the sustainability and growth of semi-trailer dealerships,” said NTDA president Gwendolyn Brown.
Floor plan financing is widely used by dealers to fund inventory purchases. While most vehicle dealers can fully deduct the associated interest costs, trailer dealers are currently limited to deducting interest up to 30% of adjusted taxable income — a restriction that can result in tax obligations even in years without profit.
Supporters say the proposed change would level the playing field and strengthen the supply chain by ensuring trailer dealers can maintain adequate inventory levels.
The NTDA is encouraging industry members to engage with lawmakers as the bill moves through Congress.
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