Camping World Sees Tailwinds from Tax Reform: How Legislative Wins Could Fuel RV Demand

The RV industry is on the cusp of a legislative breakthrough that could reshape its financial landscape—and Camping World (CWH) stands to benefit directly. Recent U.S. tax reforms, including fixes to a decade-old drafting error and targeted incentives for manufacturers, are poised to lower costs for dealers and consumers alike. For Camping World, the nation's largest RV retailer, these changes could supercharge revenue growth at a critical moment for outdoor recreation.

The Tax Fix That Could Redefine RV Economics

At the heart of the shift is H.R. 1, the sprawling One Big Beautiful Bill Act, which passed the House in May 2025. A key provision amends Section 163(j)(9)(C) of the tax code, correcting an oversight in the 2017 Tax Cuts and Jobs Act. Previously, RV dealers could only deduct 30% of interest expenses on floorplan loans for towable trailers—the most popular type of RV, accounting for 88% of sales. The fix now allows full deduction of this interest, effectively lowering dealers' financing costs.

This is no small matter. Floorplan financing, which funds dealer inventories, is a linchpin of the RV industry. By reducing dealers' borrowing costs, the change could free up capital for Camping World to invest in inventory, marketing, or store expansion. Lower costs could also translate into more affordable RV prices for consumers, spurring demand at a time when camping and outdoor travel remain culturally ascendant.

Parity and Protection: More Than Just Tax Cuts

The bill also includes broader manufacturing incentives. Pass-through tax deductions for small and medium manufacturers—already a lifeline for many RV component producers—are now permanent. Combined with reinstated R&D expensing and estate tax reforms, these policies aim to boost innovation and job creation. For Camping World, this could mean a more robust supply chain and lower costs for parts and vehicles.

Equally critical is the push to close the “de minimis” loophole, which currently lets low-value imports enter the U.S. tariff-free. Starting in 2027, this loophole will close, curbing unfair competition from foreign manufacturers. The RV Industry Association, which lobbied aggressively for these changes, estimates that Chinese and other foreign competitors have exploited the loophole to undercut U.S. prices. Eliminating this advantage could protect Camping World's margins and domestic suppliers.

The Public Lands Factor: Access Drives Demand

The bill initially included a controversial provision to sell 540,000 acres of public lands—a move that would have harmed RV tourism by reducing campgrounds and trails. The RV Industry Association, working with outdoor groups, successfully lobbied to remove this provision. Preserving public lands is non-negotiable for RV demand: 70% of Americans camp on public lands, according to the Outdoor Industry Association. Camping World's advocacy here wasn't just about ethics—it was about ensuring its customers have places to go.

Risks and the Senate's Crucible

The Senate's version of H.R. 1 could still alter these provisions. Conservative lawmakers may push to reinstate public land sales, while progressive factions might seek stricter environmental regulations. Camping World's government affairs team is preparing for a fight, particularly around the de minimis rule and floorplan fixes. Investors should monitor Senate amendments closely.

Another risk: the economy. If interest rates remain high, borrowing costs for consumers could offset the benefits of lower dealer financing.

Why Camping World Stands Out

Camping World isn't just a retailer; it's a full-service ecosystem. Its 200+ dealerships, RV protection plans, and campground partnerships create a moat against competitors. The tax reforms directly address its two biggest pain points: dealer financing costs and foreign competition. If the Senate upholds these provisions, Camping World could see a trifecta of tailwinds: lower costs, stronger demand, and healthier margins.

The Investment Case

For investors, CWH's valuation offers an entry point. At a trailing P/E of ~15x, it trades at a discount to peers like L Brands (RIVR). If the Senate's version of H.R. 1 passes as-is, Camping World's revenue could see a 10-15% uplift over the next two years, especially if towable RV sales surge.

Final Take

Legislative tailwinds are rarely this clear-cut. The RV industry's advocacy has turned a drafting error into a strategic advantage, and Camping World is positioned to capitalize. With public lands preserved, costs trimmed, and foreign competition curtailed, the path to higher earnings is clearer. Investors looking for a leveraged play on the outdoor economy—and willing to stomach political risk—should consider Camping World as a buy. Just keep an eye on Washington. The Senate's next move could make all the difference.