News & Press

Bipartisan Bill H.R. 7944 Introduced to Expand Floor Plan Financing Tax Deductions to Dealers

Mon, 23 Mar 2026 13:55:00 GMT

National Trailer Dealers Association’s Commercial Semi-Trailer Advocacy PAC Collaborates with Representatives Moore and Torres

Representatives Blake Moore (R-UT) and Norma Torres (D-CA) have introduced bipartisan legislation, H.R. 7944, aimed at expanding access to floor plan financing interest deductions for semi-trailer dealers.

Under current federal tax law, dealerships that sell motor vehicles, recreational trailers, and campers are permitted 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.

The Semi-Trailer Tax Parity Act (H.R. 7944) extends the floor plan interest financing deductibility provisions to truck trailers, semi-trailer chassis, and semi-trailer body dealership owners.

“Our federal tax code should support small businesses and incentivize reinvestment,” said Rep. 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.”

Rep. Torres emphasized the regional and national importance of the industry: “Semi-trailers are critical to moving goods throughout the Inland Empire and across the country. 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.”

Industry leaders echoed support for the legislation. “We appreciate Representatives Moore and Torres for advancing this important bill,” said Paul Christenson of North American Trailer (Salt Lake City, UT). “Under current law, semi-trailer dealers can face tax liability even in unprofitable years. This legislation will provide much-needed relief and parity.”

Gwendolyn Brown, President of the National Trailer Dealers Association (NTDA), added, “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.”

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. The Association now encourages continued engagement to support passage of H.R. 7944.

Background:
Under IRC Section 163(j), businesses can generally deduct business interest expenses from their federal taxes by up to 30% of their adjusted taxable income. 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.
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. (It is important to note that this classification applies solely within the context of the tax code.)

Lack of inclusion 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. This common-sense legislation supports and ensures fairness for our locally owned dealerships. Read the full bill here.

About the NTDA’s Commercial Semi-Trailer Advocacy PAC:
The National Trailer Dealers Association (NTDA) launched the Commercial Semi-Trailer Advocacy Political Action Committee (PAC) in November 2024, giving members a unified voice in advancing the industry’s priorities. Through strategic engagement with lawmakers, the PAC supports efforts to reduce regulatory burdens, expand tax incentives, and secure funding for trailer industry programs.

About the NTDA:
The NTDA represents nearly 1,000 companies across North America involved in selling, manufacturing, leasing, and servicing semi-trailers, parts, and accessories, along with affiliated industry service providers. The Association offers Federal Excise Tax support, industry education, and member programs, and hosts an annual convention and exhibition featuring new products, industry-leading education, networking, and a charitable golf tournament. The NTDA also advocates for the industry through its Commercial Semi-Trailer Advocacy PAC and engagement with federal lawmakers. The NTDA is headquartered in Brighton, Michigan.

Help the NTDA by Contacting Your Representative About Proposed Floor Plan Tax Bill

Fri, 6 Mar 2026 14:05:00 GMT

The NTDA’s Commercial Semi-trailer Advocacy Political Action Committee (PAC) continues to advance its goal of making trailer inventory interest fully deductible. The PAC is focused on securing additional House co-sponsors to help move the bill forward alongside Representative Blake Moore (R- Utah).

“We appreciate Dave Ward, President of North American Trailer, LLC and Mackenzie Wellman, President of Trailer Equipment, Inc. visiting Washington, DC to meet with Representatives. These in-person meetings are critical to the success of securing co-sponsors for the proposed bill,” said NTDA PAC Chairperson Paul Christenson (Actium Partners).

Any member employees who would like to visit the Washington, DC area or who wants to meet with their representative locally is invited to reach out to the NTDA President Gwen Brown at (810) 229-5960 (office), (810) 844-3124 (cell), or email gwen@ntda.org. We would be happy to have our lobbyist Timothy Lynch help you to arrange a meeting.

The NTDA formed the Commercial Semi-Trailer Advocacy PAC in November 2024 to ensure our industry is represented in Washington, DC. We want to be prepared to advocate on issues that affect our industry, including taxes, trade, and other regulations.

Our initial goal is to enable our industry to fully deduct interest on inventory held for sale, similar to other motor vehicle dealers. Currently, car dealers, truck dealers, RV dealers, boat dealers, and farm equipment dealers can deduct 100% of the interest expense incurred to finance new and used inventory. Trailer dealers do not have the same opportunity and are limited to a 30% deduction. As a result, a trailer dealer could operate at a loss and still be required to pay taxes, which we believe is unfair.

For more information, visit https://ntda.site-ym.com/page/Advocacy.

Request for Action: How You Can Help
We are looking for additional legislative support and to educate influential legislators about industry issues. Members are encouraged to join the NTDA in grassroots efforts to educate legislators about dealer and industry issues, and show how their decisions in Washington affect your dealership, business and/employees back home. It is important to educate the legislator’s staff as they advise the legislators on policy issues and positions.

Contact Your Legislator(s):

Call the district or state office, and ask to speak with the district director or scheduler. To find your elected officials, visit https://www.usa.gov/elected-officials.
For your Senator’s contact info: senate.gov
For your Representative’s contact info: house.gov.

Please contact NTDA President Gwen Brown at gwen@ntda.org or call (810) 229-5960 with questions or visit https://ntda.site-ym.com/page/.

How to Donate to the PAC

All Political Action Committee Donations Must be Written on a Personal Check to: Commercial Semi-Trailer Advocacy PAC (National Trailer Dealers Association) 9864 E. Grand River Ave., Ste. 110-290, Brighton, MI 48116 https://ntda.site-ym.com/page/Advocacy.

For more information, visit https://ntda.site-ym.com/page/Advocacy or call (810) 229-5960 or email gwen@ntda.org. Contributions to the Commercial Semi-Trailer Advocacy PAC are not deductible for tax purposes. Contributions to the Commercial Semi-Trailer Advocacy PAC are voluntary. You may refuse to contribute without reprisal. Contributions to the Commercial Semi-Trailer Advocacy PAC are subject to the limitations and prohibitions of federal law. The proposed contribution amounts are merely suggestions. You may choose to contribute more or less or not at all. The maximum an individual may contribute is $5,000 per calendar year to the Commercial Semi-Trailer Advocacy PAC. Individuals may contribute to other state or federal PACs and contribute to the Commercial Semi-Trailer Advocacy PAC. Corporate and foreign national contributions are prohibited. Federal law requires the Commercial Semi-Trailer Advocacy PAC to use its best efforts to obtain and report the name, home mailing address, occupation, and name of employer for each individual who contributes in excess of $200 in a calendar year. The Commercial Semi-Trailer Advocacy PAC requests that all donors complete a donation form in conjunction with his/her/their donation.

Right to Repair Legislation Could Impact Trailer Industry

Fri, 6 Mar 2026 13:56:00 GMT

Over the past five to seven years, Congress has considered legislation that would prohibit vehicle manufacturers — automobile and truck alike — from employing technology or legal barriers to prevent motor vehicle owners from accessing vehicle-generated data.

Dubbed “Right to Repair,” the legislation aims to guarantee vehicle owners the ability to have their vehicles serviced and repaired by their choice of vendor, be that the dealership, vehicle repair chains, or their local repair shop. With the increased electronic sophistication of today’s motor vehicles, fixing a broken side mirror entails not only the actual replacement of the mirror but access to the internal “codes” so that the multitude of sensors embedded in the mirror continue to properly function.

One Congressman commented that today’s cars (and trucks) are really computers on wheels. Citing safety and liability concerns, OEMs are attempting to block access to those codes in a manner that results in diminished options for vehicle owners to get their car or truck repaired.

The latest iteration of this initiative is H.R. 1566, the Right to Equitable and Professional Auto Industry Repair Act — or REPAIR Act — that was introduced in the U.S. House of Representatives on February 25, 2025 and referred to the House Energy & Commerce Committee. While the title includes only the word “Auto,” the legislation nonetheless applies to the trucking industry as well.

Closer to home, the legislation also covers “trailers” (which are included under the definition of “motor vehicle”). The legislation pits the OEMs and dealers versus the national repair chains, parts manufacturers, as well as suppliers and consumer groups.

According to CDK Heavy Truck, “The Right to Repair act (e.g., REPAIR Act) could significantly impact semi-trailer dealers by taking away their access as the sole provider of specialized repairs, forcing them to share diagnostic data, tools, and software with independent shops. While this increases competition and potentially lowers repair prices for fleets, it may also reduce service revenue for authorized dealers. Dealers may need to adapt to a landscape where aftermarket shops can access the electronic control units (ECU) and advanced driver assistance systems (ADAS) of newer trailers.”

Recently, a subcommittee of the House Energy and Commerce Committee reviewed the legislation and voted to move it up to the full Committee for further consideration. If the full Energy and Commerce Committee approves H.R. 1566 — either in its current form or amended — the next step would be a vote in the House of Representatives.

At this time, it’s difficult to predict the timing of future action but it’s worth noting that a number of individual states have enacted — or are considering enacting — similar Right to Repair legislation. If enough states enact statutes, it may come to pass that the trucking and automobile industries prefer one uniform, national Right to Repair stature rather than deal with a patchwork of state laws and regulations. Truck and trailer manufacturers argue that these laws could compromise security, safety, and proprietary information, potentially leading to unauthorized modifications. Dealers and manufacturers could face enforcement actions if they fail to comply with regulations requiring the sharing of repair information, according to the law firm of Crowell & Moring LLP.