By Greg Long
Congress is debating a new tax bill — nicknamed the “One Big Beautiful Bill” — and if it passes, it could change how people buy (or finance) an RV.
Here are three key things RVers should know:
- You might be able to deduct RV loan interest
The bill proposes allowing buyers to deduct up to $10,000 per year in interest from their federal income taxes when they finance an RV or a vehicle to tow it. That could mean paying less in taxes — not getting money back, but lowering how much of your income is taxed. - Seniors could qualify for even more
If you’re 65 or older, you could qualify for an extra $4,000 deduction per person. For a retired couple, that could add up to $18,000 in deductions when financing both a tow vehicle and an RV. - There are income limits.
To qualify for these deductions:
- You must earn less than $100,000/year if filing single
- Or less than $200,000/year if married and filing jointly
This bill hasn’t passed yet (it’s still being debated) but it could make RV ownership more tax-friendly if it becomes law.
Those who have an existing loan can find out how much they could save at tax time using the Bish RV deduction calculator.
What Vehicles Qualify for the Bill’s Interest Deduction?
To qualify for the proposed deduction, the vehicle must:
- Be assembled in the United States
- Be manufactured for use on public roads (not off-road-only vehicles)
- Be for personal use, not for business or commercial purposes
Eligible vehicles may include:
- RVs (motorhomes and towable campers)
- Pickup trucks and SUVs (including tow vehicles)
- Cars, minivans, vans
- Motorcycles and some ATVs (if street-legal and assembled in the U.S.)
Which Is Better: A Lower Interest Rate or a Tax Deduction?
A lower interest rate usually saves you more money overall, but the new tax deduction could still put real cash back in your pocket — and getting both is even better.
What a Lower Interest Rate Does
Lower rates mean smaller payments and less total interest over time.
Interest Rate Example:
Loan amount: $45,000 over 10 years
- At 7.5% interest, you’ll pay about $18,970 in total interest
- At 8.8% interest, you’ll pay around $22,445
That’s a difference of $3,475, just from a lower rate.
What a Tax Deduction Does
The Big Beautiful Bill would let you deduct up to $10,000 in interest you pay each year on your camper and/or tow vehicle loan. You still pay the interest, but when tax time comes, you can subtract it from your taxable income. That could lower how much you owe (or increase your refund).
Tax Deduction Example:
You pay $7,500 in loan interest this year.
You’re in the 22% tax bracket.
$7,500 × 22% = $1,650 saved at tax time.
That’s money you keep, just for financing the right way.
What’s the Smartest Move?
If you can get both, that’s the best of both worlds:
- A lower rate means you pay less to the bank
- A tax deduction means you get more back from the government
With over 10 years in the RV industry, Greg Long combines firsthand dealership experience with a passion for helping people find the right RV for their adventures. He’s walked thousands of campers, talked with real buyers, and believes the best RV advice should be clear, honest and fun. He is self described as an amateur adventurer and professional dreamer, in addition to being the Bish-Blog-Guy. To learn more about what Bish’s RV and read more of Greg’s content, visit here.
