A bipartisan bill was introduced into the U.S. House of Representatives this week aimed at expanding access to floor plan financing interest deductions for semi-trailer dealers.
Introduced by Rep. Blake Moore (R-UT) and Rep. Norma Torres (D-CA), the bill (H.R. 7944) has been named the Semi-Trailer Tax Parity Act and would extend floor plan interest financing deductibility provisions to truck trailers, semi-trailer chassis and semi-trailer body dealership owners.
Under IRC Section 163(j) of Federal tax law, businesses can generally deduct business interest expenses from their federal taxes by up to 30% of their adjusted taxable income. Yet because floor plan financing has unique needs, Congress enacted exclusions for motor vehicles, recreational trailers and campers, allowing dealerships to fully deduct interest paid on floor plan financing. However, this provision does not extend to semi-trailer dealerships, placing them at a competitive disadvantage despite similar business models and reliance on inventory financing.
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The Semi-Trailer Tax Parity Act includes truck trailers, semi-trailer chassis, and semi-trailer bodies in the definition of “motor vehicle” under the 163(j) section of the tax code — a classification that would apply solely within the context of the tax code.
“Our federal tax code should support small businesses and incentivize reinvestment,” says Moore. “Semi-trailers are essential to nearly every sector of the economy, transporting everything from consumer goods to life-saving medicines. This legislation ensures semi-trailer dealers receive the same tax treatment as other vehicle dealerships.”
Torres also emphasizes the regional and national importance of the industry.
“Semi-trailers are critical to moving goods throughout the Inland Empire and across the country,” she says. “Yet these dealerships face unequal tax treatment, creating financial strain and limiting options for customers. I’m proud to co-lead this effort to ensure fairness nationwide.”
The National Trailer Dealers Association (NTDA) launched a Commercial Advocacy political action committee in 2024 with hopes of amending the floor plan deduction. NTDA states trailers lack of inclusion within current tax code has resulted in reduced capital for inventory, strained cash flows, reduced inventory levels and the potential to owe federal taxes for semi-trailer dealerships in years when they have incurred a loss or have no taxable income.
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NTDA says this common-sense legislation supports and ensures fairness for locally owned dealerships.
“We are grateful for the leadership of Representatives Moore and Torres in introducing this bipartisan legislation. Achieving floor plan tax parity is critical to the sustainability and growth of semi-trailer dealerships,” says NTDA President Gwendolyn Brown.
Trailer dealers were equally supportive of the legislation.
“We appreciate Representatives Moore and Torres for advancing this important bill,” says Paul Christenson of North American Trailer in Salt Lake City, Utah. “Under current law, semi-trailer dealers can face tax liability even in unprofitable years. This legislation will provide much-needed relief and parity.”
The NTDA’s Commercial Advocacy PAC also recognized the efforts of its Dealer and Allied members, whose outreach to lawmakers — through calls, letters, and in-person meetings — played a key role in advancing the bill. NTDA now encourages continued engagement to support passage of H.R. 7944, and encourages members to remain engaged with their lawmakers to push the bill forward.
