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)

Businesses using the LIFO inventory method must maintain a minimum level of inventory at year end or risk triggering a recapture tax. Given the current supply chain issues, auto dealers in particular have been unable to acquire inventories necessary to avoid additional tax liability triggered by LIFO recapture. Read More

Arbitration

In the spring of 2022, the Forced Arbitration Injustice Repeal (FAIR) Act was passed by the U.S. House of Representatives. The FAIR Act would prohibit pre-dispute arbitration agreements in civil rights, consumer, antitrust, and employment disputes. The legislation has been referred to the Senate Judiciary Committee but has not yet advanced in the Senate. Read More

Right to Repair

Several bills aimed at ensuring vehicle owners and independent repair shops have equal access to repair and maintenance tools as automakers' dealerships have been introduced in the 117th Congress, including the Right to Equitable and Professional Auto Industry Repair (REPAIR) Act, the Fair Repair Act, and the Freedom to Repair Act. Read More

Estate Tax

The Death Tax Repeal Act was introduced in both the House and the Senate in the early 2021.  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

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