The National Trailer Dealers Association (NTDA) has launched a political action committee (PAC), the Commercial Semi-Trailer Advocacy PAC, which NTDA states will enable members to actively engage in the political process and advocate for the semi-trailer industry's interests.
NTDA says the PAC will help the association build and strengthen relationships with key lawmakers, opening doors to legislative and regulatory outcomes that directly benefit members. Through campaign contributions, NTDA says the PAC will foster goodwill and ensures policymakers understand the challenges and priorities of the semi-trailer industry.
NTDA believes a critical issue to address now through the PAC is floor plan financing and tax deductions.
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The floor plan tax deduction in the Federal tax code allows dealers to deduct interest on loans used to purchase inventory, including semi-trailers. Unfortunately, NTDA states 2017 tax reform reduced this benefit for trailer dealers when it changed the definition of motor vehicles to include only "self-propelled vehicles" — excluding semi-trailers. NTDA says this oversight and inequity leaves trailer dealers at a disadvantage compared to auto and truck dealers, despite their shared reliance on floor plan financing. Parity is essential to ensure fair treatment across the industry.
Additionally, high market interest rates have intensified the issue, NTDA adds, limiting dealers’ ability to purchase inventory, disrupting manufacturing and supply chains, and threatening jobs across the industry.
"The Association urges Congress to amend Internal Revenue Code § 163(j). This critical change would grant trailer dealers the same tax benefits currently available to auto and truck dealers, promoting fairness, business growth, and economic stability," says NTDA President Gwendolyn Brown.
NTDA states under the current tax code, a trailer dealer could incur a $500,000 loss and hold a $10 million line of credit with a 6% interest rate and still owe substantially in taxes.
NTDA has produced sample letters Dealers and Allied members can complete and submit to their local representatives and Senators to alert them to this discrepancy and the need for an amendment.
For more information about the new PAC, and to support its efforts, contact Brown at [email protected], or go to the Resources section of the NTDA website.
