In April, U.S. Rep. Dan Kildee, D-Mich., introduced a bill — the Supply Chain Disruptions Relief Act — which would allow dealerships that use the “last in, first out” inventory accounting to wait until 2025 to replace their inventories and determine the income attributable to the sale of such inventory during 2020 or 2021, giving dealers time to restock their inventories as the chip shortage eases and auto production returns to pre-pandemic levels. The bill is supported by more than 170 House lawmakers, including 95 Republicans.
Sen. Sherrod Brown, D-Ohio, introduced a companion bill under the same title, which has the support of more than 50 lawmakers.
The lawmakers supported legislative action to provide relief to dealers who are facing significant tax burdens triggered by global supply chain disruptions and subsequent inventory shortages related to COVID-19.
The tax relief was left out of the nearly $1.7 trillion omnibus spending package that would avert a federal government shutdown, which was on track to be passed and sent to the White House on Friday.
