LIFO Tax Relief Bill Resurfaces
Senate measure aims to remedy inventory-shortage effects.
The tax-relief legislation has been championed by the National Automobile Dealers Association.
IMAGE: Leeloo Thefirst
A Senate bill has been reintroduced that would provide tax relief to auto dealers dealing with ongoing inventory shortages.
The bipartisan Supply Chain Disruptions Relief Act would allow new-vehicle dealers using “last in, first out, or LIFO, accounting, extend until until the tax year ending before Jan. 1, 2026 the deadline to pay taxes on 2020 or 2021 inventory sales.
The legislation has been championed by the National Automobile Dealers Association.
The Senate approved a similar bill in December, but time ran out for the House to consider its version of it.
Inventory shortages have plagued dealers since the early days of the pandemic, though narrowed supply has raised model prices to historic highs, padding their profits.
LEARN MORE: NADA to Focus on Key Industry Issues in 2023
Originally posted on Auto Dealer Today
More Industry
Charger Network Growth Slows
Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.
Read More →
Lenders, Consumers Take on More Auto Loan Risk
September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.
Read More →
Next-Gen Hybrids in Sight
Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.
Read More →
Gem State Stores Change Hands
A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.
Read More →
Charging In Motion
Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.
Read More →
Twin Cities Stores Sell
Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.
Read More →
U.S. Auto Sales Still Below Prepandemic Levels
Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.
Read More →
The Powertrain Shift
Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.
Read More →
Achromatic Autos
The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.
Read More →
Used-Vehicle Affordability Worsens
Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.
Read More →