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
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