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LIFO Relief, Right to Repair Bills Reintroduced; White House Issues Rules for EV Charging Network This week a bill to provide tax relief to dealers who use the Last-In, First-Out (LIFO) accounting method was reintroduced in the Senate. Senators Sherrod Brown (D-OH) and Tim Scott (R-SC) introduced the Supply Chain Disruptions Relief Act which would provide LIFO tax relief via Section 473 of the IRS Code by giving dealers who were unable to replace their new auto inventory during tax year 2020 and 2021 due to severe supply shortage a three year grace period. The legislation has at least 22 cosponsors in the Senate. The legislation was reintroduced in the House a few weeks ago by Reps. Dan Kildee (D-MI) and Jodey Arrington (R-TX). Similar legislation was passed by the Senate late last year, but the House adjourned before its version of the bill could pass. Right to Repair The Right to Equitable and Professional Auto Industry Repair (REPAIR) Act has been reintroduced in the House. The bill, 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 sponsored by Reps. Neal Dunn (R-FL), Brendan Boyle (D-PA), Warren Davidson (R-OH) and Marie Gluesenkamp Perez (D-WA). The REPAIR Act was introduced in 2022 during the 117th Congress but failed to advance. EVs Also this week, the Biden Adminisration unveiled the rules that will govern the release of $7.5 billion in federal funds authorized by the infrastructure packaged passed in 2021 for a nationwide EV charging network. Under the rules, effective immediately, the chargers must be assembled at a factory in the U.S. and any iron or steel charger enclosures or housing must by made in the U.S. Beginning in July of 2024, 55 percent of the charger’s cost must come from components made in America. The White House also issued a fact sheet detailing its efforts and progress on a “Made in America” EV charging network.
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In case you missed it, the Winter edition of AutoDealer magazine is out now. Check it out! Quotes of the Week "As a result of supply chain disruptions beyond the dealers' control, LIFO recapture will trigger significant, unexpected tax liability, imposing massive tax bills on small businesses that could otherwise be used to invest in workers, EV infrastructure and replenishing vehicle inventory as it becomes more available." -Zach Doran, President, Ohio Automobile Dealers Association (Automotive News) “Trade barriers, please no.” Ola Kaellenius, Chief Executive, Mercedes-Benz Group (Reuters) Friday Feel Good Here is just one recent example of how dealers are doing good: NADA donated two vehicles to the Dallas Police Department during the trade group’s convention and exposition this year. The police will use the Ford F-150 and a Nissan Altima as part of its bait-car program, established in 2003 to combat auto thefts and burglaries in vehicles. The donated vehicles will be outfitted with covert cameras and tracking devices. When a vehicle is stolen or burglarized, police can track it, improving the chances of catching the perpetrators. “Dealers across the country are active in their communities and are often supporters of their local law enforcement and public services,” says NADA Show Committee Chairman Danny Renshaw, dealer principal of Renshaw Automotive Group in Bowling Green, KY. “We know these vehicles will be put to important work.” (Wards Auto) We want to hear more about how you are supporting your local community – tweet us at @AIADA_News and use the hashtag #DealersDoGood |
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