Issues

EV Tax Credit/Clean Vehicle Credit 

The Inflation Reduction Act (IRA), which was signed into law on August 16, 2022, created a new “clean vehicle credit” which will replace the previous EV tax credit.  The new $7,500 credit only applies to vehicles with final assembly in North America, and also sets strict new limitations on the origin of critical minerals and components of a vehicle’s battery as well as caps on consumer incomes and vehicle MSRPs. Read More

Federal Trade Commission/Regulatory Overreach

Recently, the Federal Trade Commission (FTC) announced a proposed rule, the Motor Vehicle Dealers Trade Regulation Rule No. P204800, which covers an extremely wide variety of business operations including advertising regulatory standards, vast disclosure enhancements and an onerous recordkeeping requirement. Read More

Last In/First Out (LIFO)

The Supply Chain Disruptions Relief Act, which would provide LIFO tax relief via Section 473 of the IRS Code for car dealerships using the LIFO accounting method, was introduced in both the House and Senate in early 2023. Read More

Arbitration

The Forced Arbitration Injustice Repeal (FAIR) Act has been re-introduced in both the House and in the Senate in the 118th Congress.   The FAIR Act, which would prohibit pre-dispute arbitration agreements in civil rights, consumer, antitrust, and employment disputes, passed the U.S. House of Representatives in 2022 during the 117th Congress, but then failed to advance in the Senate. Read More

Right to Repair

The Right to Equitable and Professional Auto Industry Repair (REPAIR) Act, which seeks "to ensure consumers have access to data relating to their motor vehicles, critical repair information, and tools, and to provide them choices for maintenance, service, and repair of their motor vehicles," was introduced in early 2023. Read More

Estate Tax

The Death Tax Repeal Act was introduced in the House in early 2023.  America’s international auto dealers are threatened every day with the prospect of losing their family businesses to the federal Estate Tax, more appropriately called the “Death Tax.” Read More