Issue 2 2025 Official Publication of the New Jersey Coalition of Automotive Retailers WHAT AUTO DEALERS NEED TO KNOW ABOUT THE “ONE BIG BEAUTIFUL BILL”
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table of CONTENTS NJ CAR BOARD OF TRUSTEES BY REGION NORTHERN REGION I (Bergen, Essex, Hudson, Passaic, Sussex) Mark Abaid (Alt.) Joseph Agresta, Jr. (Alt.) Timothy Allocca Jeffrey Brown John Fette Matthew Haiken (Alt.) William Kundert, Jr. Brian Lam Reneé P. McGuire Richard Selman Todd Van Duren NORTHERN REGION II (Hunterdon, Morris, Somerset, Union, Warren) Gregg Ciocca, Jr. David Ferraez Chris Gilbert (Alt.) John Johnson, Jr. Trent Miller (Alt.) Sean Lyons Mark Montenero Chris Preziosi, Jr. (Alt.) Edward J. Rossi Michael Salerno Stephen Tilton CENTRAL REGION (Middlesex, Monmouth, Ocean) Dan Chuhinko Robert Ciasulli Lisa Ocasio Devivo Kevin DiPiano (Alt.) Garry Foltz Elizabeth Giglio Adam Kraushaar Anton Semprivivo Joseph Wajda (Alt.) SOUTHERN REGION (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, Salem) Russell Abate Allen Eastlack (AJ) (Alt.) Jason Elkins Jeremy Fisher Thomas Hessert, III Steven Kindle Stacey Lilliston James Magee (Alt.) Marcy Maguire Robert D. McCormick NJ CAR Executive Committee and Board of Trustees 2025 Ron E. Baus, Jr...................................................................................Chairman Andy Shapiro.............................................................................Vice Chairman Ed Barlow, III.................................................................................... Secretary Michael P. DeSilva............................................................................ Treasurer Jordan Wright.........................Regional Vice President (Northern Region I) Michael DiFeo.......................Regional Vice President (Northern Region II) Richard Malouf, Jr........................Regional Vice President (Central Region) David Kull.................................Regional Vice President (Southern Region) Eric Nielsen..........................................................................Budget Chairman Eric Nielsen..........................................NJ CAR Insurance Co. Ltd. Chairman James Curley, III..........................................NJ CAR Services, Inc. President Richard DeSilva, Jr.........................................NADA Director for New Jersey Frank M. Pezzolla...............................................Truck Committee Chairman Judy Schumacher-Tilton..................................................CAR-PAC President Thomas DeFelice, lll.........................................................NextGen Chairman Laura C. Perrotta. ............................................................................. President PRESIDENT’S MESSAGE 6 CRA Repeals and Recall Legislation Updates BY LAURA PERROTTA CHAIRMAN’S MESSAGE 8 Together, We Can Succeed BY RON E. BAUS, JR. NADA DIRECTOR’S MESSAGE 10 Major Issues Addressed by NADA BY RICK DeSILVA, JR. 12 Congress Overturns New Jersey’s EV Mandates A Win for Consumer Choice BY LAURA PERROTTA 14 Powering the Future How the NJ CAR Energy Alliance is Saving Dealers Thousands BY MIKE MADIA 16 Reflections on the TAP Pilot Building a Stronger Pathway for Automotive Technicians BY BRANDON JURAKHAN 18 What Auto Dealers Need to Know About the “One Big Beautiful Bill” BY KRISTIN REESE-SCALABRINO, CPA 20 NJ CAR Services Reinventing Dealer Support With a Mission That Matters BY MIKE MADIA 22 Assuring DMS-Generated Contracts Comply with Law Who Bears the Risk? BY LAURENCE SMITH, ESQ. 24 NJ CAR Making a Difference Philanthropy, Highlights and Grassroots 29 Thank You to Those Who Contributed to NADA PAC 30 NJ CAR Recognizes Dealerships That Have Contributed to CAR-PAC 32 New Car Dealers Economic Impact 34 Every Dealership Should Be a Member of NJ CARPOOL ©2025 New Jersey Coalition of Automotive Retailers (NJ CAR) | The newsLINK Group, LLC. All rights reserved. New Jersey Auto Retailer is published four times per year by The newsLINK Group, LLC for NJ CAR and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of NJ CAR, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. New Jersey Auto Retailer is a collective work, and as such, some articles are submitted by authors who are independent of NJ CAR. While a firstprint policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. EDITOR: BRIAN HUGHES PUBLISHED BY THE NEWSLINK GROUP, LLC (855) 747-4003 Official Publication of
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PRESIDENT’S MESSAGE From the start of the new year, 2025 required that NJ CAR rev up its forces to achieve success in our two hottest priorities! The beginning of the year was hectic. While the new year highlighted how federal and state policies impact our dealers, it did not reveal an easy path to victory for our members. Navigating the federal and state legislative processes to produce solutions was demanding, but NJ CAR engaged and was part of the solution at both levels. MOTOR VEHICLE OPEN RECALL AND FAIR COMPENSATION ACT, AND FRANCHISE PRACTICES ACT We faced two contrasting arenas. While we were dared by a new U.S. Republican President who championed nullifying federal electric vehicle mandate policies, at the state level, we faced a term-limited New Jersey Democrat Governor who envisioned state environmental policies as part of his legacy. Also at the state level, we confronted a state Legislature that supported the Motor Vehicle Open Recall and Fair Compensation Act, our bill to amend the Franchise Practices Act to better address open recalls, provide fair compensation to technicians, and provide litigation standing to NJ CAR to better protect its members’ interests in court. Still, the bill had not moved since it was introduced in 2024. NJ CAR stepped up to protect our members’ interests in each arena. We thank our members for joining us in this battle to secure our successes for these two priorities by the end of June 2025! Failure in either of our priorities would have had devastating effects on our truck and auto dealers. By the time of this writing, NJ CAR can report that the priorities have been successfully addressed! EV MANDATES AND CONGRESSIONAL REVIEW ACTS One priority was to nullify the overreaching EV mandates from California adopted by New Jersey that posed an existential threat to our truck and auto dealers. Mission accomplished! These California mandates had been adopted by 11 other states, representing one-third of the auto market in the United States and crippling the dealers in each of them. NJ CAR hosted numerous meetings with state legislators, encouraging them to use their authority to nullify the state regulations. They were reminded of the detrimental impacts these EV mandates would have on our dealers and advised that these negative results would undermine the significant contributions made by our dealers in local and statewide economies. However, despite these facts, the state Legislature offered no relief from the mandates. In contrast, NJ CAR’s efforts on the federal side were successful. Adapting to the opportunity presented by new federal leadership seeking to nullify the EV mandates from California, NJ CAR activated its NJ CARPOOL grassroots program and also contacted the New Jersey Congressional delegation to urge that Congress support the passage of the Congressional Review Act Resolutions for an ultimate signature by the President. Signed by President Trump on June 12, 2025, these three resolutions ended the EV mandates facing consumers in New Jersey: H.R.J.88, rescinding the waiver that enabled the California Air Resource Board (CARB) to impose California’s EV sales mandates on states like New Jersey; H.R.J.87, eliminating the EV mandate that required truck manufacturers to sell an increasing percentage of zero-emission medium and heavy-duty vehicles beginning 2024, eventually reaching 100% zero-emission vehicle sales by 2036; and H.J.Res.89, nullifying the Omnibus Low NOx Rule that requires new diesel emission standards beginning in 2024. NJ CAR was part of that effort, and we thank our members who joined us in this federal campaign. We achieved success in our other top priority, too! We worked hard to urge the State Legislature to pass the Motor Vehicle Open Recall and Fair Compensation Act before the start of the summer legislative break on June 30, 2025. The goal was to have the bill sent by June 30 to the Governor’s desk for his signature. Mission accomplished! NEXT STEPS AND LOOKING FORWARD Though a priority bill for NJ CAR with bipartisan sponsorship in the Legislature, the bill had not moved since it was introduced. The Assembly (A4380) and Senate (S3309) versions of the bill had been introduced on May 16, 2024, and May 20, 2024, respectively. However, starting March 6, 2025, both bills received committee hearings, were amended, substituted, and posted for a final vote in both houses by June 30. Despite oppositional efforts by the manufacturers, NJ CAR succeeded in encouraging the Legislature to approve the bill for final passage and it now awaits signature by the Governor. We thank our members who joined us in various meetings, testified with us at various legislative committee hearings, and voiced their support privately to legislators, further urging that they support our bill. This has been an exciting first half of 2025! The second half of the year will be quite dynamic with the upcoming elections. As we often say — elections have consequences. We look forward to working with everyone as we navigate the upcoming activities of this November’s gubernatorial and Assembly elections and their results. BY LAURA PERROTTA, PRESIDENT, NJ CAR CRA Repeals and Recall Legislation Updates 6 NEW JERSEY auto retailer
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CHAIRMAN’S MESSAGE BY RON E. BAUS, JR., CHAIRMAN, NJ CAR Together, We Can SUCCEED It is such an honor to serve as your NJ CAR Chairman this year. It has been eye-opening to see how strong we are as an organization when we work together to get things done. AVOIDING EV MANDATES This spring, we faced potentially catastrophic regulations that could have put many of us out of business. The Advanced Clean Cars II (ACCII) and Advanced Clean Trucks (ACT) regulations set impossible targets for electric vehicle sales, which would have caused major reductions in gas and diesel vehicle availability in New Jersey, resulting in job losses and businesses fleeing to surrounding non-CARB states. The issues facing these regulations were massive, including overall cost disparities between gas/diesel and electric vehicles, a lack of infrastructure, and lagging customer demand. NJ CAR has been telling our story regarding these challenges to legislators and has opposed these regulations from the beginning. It was only through coordination with the NADA, state, and metro dealer associations across the country, and your grassroots involvement, that we were able to engage with Congress to put an end to these regulations. THANK YOU FOR PARTICIPATING IN NJ CAR’S GRASSROOTS EFFORTS Congress passed three Congressional Review Act joint resolutions: H.J.Res.88, H.J.Res.87, and H.J.Res.89, which ended the EV mandates facing consumers in New Jersey based on overreaching California regulations that went too far too fast. We should celebrate this success! I want to thank all of you who called your House and Senate members to voice your concerns on these regulations. Taking action is so important, even if the members didn’t vote to support this critical action. They needed to hear where the franchised new car and truck dealers stand on these issues and why. They needed to know how bad it was going to get for the New Jersey consumers to hopefully deter future regulations. HOW DEALERS CAN CONTINUE ADVOCATING THROUGH GRASSROOTS I want to ask each of you to continue engaging with NJ CAR. There are a lot of ways you can get involved. Here are some suggestions: • Join and participate in NJ CARPOOL (our grassroots network) and get your employees to engage. We make this process so easy for you with pre-drafted communications that you can personalize. • Host a legislator at your dealership. We can help set up a visit for you to start building a lasting relationship with your elected officials. • Learn more about CAR-PAC. This is a powerful tool to move the needs and keep legislators in Trenton who support our policy issues. • Engage in NJ CAR in every way you can. Attend meetings, sign your future leaders up for NJ CAR NextGen, and utilize NJ CAR Services to support your association’s advocacy efforts. • Please read your NJ CAR emails — they provide the latest updates on important issues, priorities, and sensitive information about our industry. WE NEED YOU — MAKE YOUR VOICE HEARD! While NJ CAR does a lot of the heavy lifting for the dealer body, your voice and engagement with this great organization are needed and appreciated as we address any current and future challenges related to our industry. These are just a few ideas for how you can engage. We need your voice and support to ensure the policy success of franchised new car and truck dealers in Washington, D.C., and Trenton long into the future. Scan the QR code to sign up for NJ CARPOOL today! https://www.njcar.org/advocacy/ join-the-nj-car-grassroots-network-today/ 8 NEW JERSEY auto retailer
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NADA DIRECTOR’S MESSAGE BY RICK DeSILVA, JR., DIRECTOR, NADA Major Issues Addressed by NADA NADA continues to advocate aggressively on issues critical to the retail automotive industry. The following is an update on key developments. Please feel free to contact me at rdesilva@libertycarsnj.com with any questions. CONGRESS VOTES TO REVOKE CARB ZEV MANDATES In a major victory for auto dealers and consumers, Congress passed joint resolution H.J.Res.88, under the Congressional Review Act (CRA), to revoke the California Air Resources Board (CARB) waiver for its Advanced Clean Cars II rule (ACCII), which would have banned sales of both gas-powered and hybrid vehicles. Reflecting on the House’s bipartisan passage of the resolution, NADA emphasized the consumer impact: “NADA lauds the House of Representatives’ bipartisan passage of H.J. Res.88, which would revoke California’s rule to ban gas and hybrid vehicles in 12 states. Because California’s mandate forces automakers to deliver EVs for sale irrespective of consumer demand, … the rationing of new gas cars will leave consumers with far fewer vehicle choices and will force consumers throughout the country to pay more for new and used cars.”1 Following the Senate vote, NADA continued its support, focusing on the broader implications: “NADA applauds the Senate for its passage of legislation which stops California regulators from banning gas and hybrid vehicles in twelve states. This unrealistic mandate, coupled with an insufficient and unreliable charging infrastructure, would have drastically reduced consumer choice and raised prices for new and used cars and trucks for all Americans.”2 NADA and ATD also supported heavy-duty resolutions H.J.Res.87 and H.J.Res.89, which also passed. These respectively revoke California’s waivers to ban new heavy-duty diesel trucks and impose stricter NOx limits than federal standards. On June 12, 2025, President Trump signed these resolutions into law, so these CRAs will now block the EPA from granting similar waivers without Congressional approval. IMPACT OF TARIFFS On April 29, President Trump announced an Executive Order exempting automobiles and auto parts from steel and aluminum tariffs. Under the order, auto parts will be subject only to the auto tariff, and automobiles in noncompliance with the United States-Mexico-Canada-Agreement (USMCA) and parts from Mexico and Canada will no longer face both the 25% “fentanyl” tariff and the 25% auto tariff. OEMs will also receive a credit toward tariffs on imported parts (including those payable by suppliers), applicable to vehicles assembled in the United States between April 3, 2025, and April 30, 2026. NADA has been outspoken with the Administration, Congress, and regulators on the negative impact tariffs have on vehicle affordability, sales, and dealership viability. EPA RECONSIDERS UNREALISTIC ZEV MANDATE Current EPA Multi-Pollutant Emissions Standards for light- and medium-duty vehicles, and Greenhouse Gas (GHG) Emissions Standards for heavy-duty vehicles require the increase of ZEV sales volumes beginning by model year 2027, which must reach 56% by 2032. However, the EPA announced in March that it will be reviewing those standards along with the heavy-duty low NOx regulation, setting more stringent diesel tailpipe standards for heavy-duty trucks. In February, the Transportation Freedom Act (S.711) was introduced, which would repeal the EPA’s overly aggressive emissions rules for light- and heavy-duty vehicles, repeal NHTSA’s CAFE standards, and revoke California’s ability to regulate vehicle emissions. A House companion bill (H.R.2814) was introduced as well, and in support of this legislation, NADA is urging members of Congress to co-sponsor S.711/H.R.2814. NADA and ATD will continue to work with the current administration to push for more realistic emissions regulations. 1. https://www.nada.org/nada/press-releases/nada-lauds-house-passage-legislation-stopping-californias-ban-new-gas-cars 2. https://www.nada.org/nada/press-releases/nada-applauds-senate-passage-legislation-stop-california-banning-gas-cars 10 NEW JERSEY auto retailer
NADA AND ATD ADVOCATE FOR REASONABLE EMISSIONS STANDARDS On September 22, 2025, NADA and ATD submitted comments to the EPA supporting the repeal of Biden-era GHG emissions standards, which they argue have raised vehicle costs, restricted consumer choice, and weakened industry competitiveness. The associations stressed that the prior rules were unrealistic, relying on assumptions of rapid EV adoption without accounting for inadequate charging infrastructure or consumer demand. As NADA noted in its filing, the regulations were “premised on overly aggressive assumptions regarding future EV market penetration … [and] EPA’s final rule should set technology-neutral emissions standards that maximize, not inhibit, fleet turnover.” NADA and ATD urged the EPA to pursue a more balanced, technology-neutral approach that accommodates a broad range of powertrains, including internal combustion, hybrids, and alternative fuels, while still advancing emissions reductions. The EPA is expected to finalize its reconsideration later this year, though legal challenges are anticipated, and NHTSA is preparing a separate rulemaking that could significantly revise CAFE standards. “ONE BIG BEAUTIFUL BILL ACT” MOVES FORWARD — NOW ENACTED President Trump officially signed H.R.1, known as the “One Big Beautiful Bill Act,” into law on July 4, 2025. The federal law includes provisions to repeal Biden-era EV mandates. This addresses several NADA tax priorities. Key highlights of the law include: • Permanent Section 199A Deduction: Increasing the deduction to 23% • Permanent Income Tax Rate Extensions • Increased Estate/Gift Tax Exclusion: Raising the basic exclusion limit to $15 million (individual) and $30 million (joint) • Bonus Depreciation: Authorizing 100% bonus depreciation through December 31, 2029 • Increased Section 179(b) Limits: Boosting depreciation limits from $1 million to $2.5 million • Increased SALT Cap Deduction: Raising the State and Local Tax (SALT) deduction cap to $40,000 per household • Auto Loan Deductibility: Introducing a $10,000 cap and Modified Adjusted Gross Income (MAGI) limits for auto loan deductibility for U.S. assembled vehicles • Eliminates the New EV Credit (30D) after December 31, 2025, and December 31, 2026, for manufacturers that have sold less than 200,000 EVs since 2009 • Eliminates the EV Lease Credit (45W) after December 31, 2025, except for buyers who entered into a contract before May 12 • Eliminates the EV Used Credit (25E) after December 31, 2025 DIRECT SALES CHALLENGES The longstanding dealer franchise system continues to face pressure from emerging market entrants pursuing direct-to-consumer sales strategies. In recent months, the California New Car Dealers Association (CNCDA) and a coalition of Volkswagen and Audi dealers in Florida have filed lawsuits against Volkswagen Group and its subsidiary Scout Motors Inc., seeking to halt Scout’s proposed direct-sales model. In addition, CNCDA is closely examining Sony Honda Mobility’s plans to sell its Afeela 1 electric sedan directly to consumers. NADA remains steadfast in its position that the franchised dealer model is the most effective and consumer-friendly method of selling and servicing vehicles. The Association has pledged its full support to state and metropolitan dealer organizations in defending the franchise system against any efforts to bypass or diminish its critical role in the automotive marketplace. CATALYTIC CONVERTER ANTI-THEFT LEGISLATION NADA anticipates the reintroduction of the Preventing Auto Recycling Thefts (PART) Act, aimed at curbing the nationwide surge in catalytic converter theft. The proposed legislation would require manufacturers to stamp unique, traceable identifiers on catalytic converters at the time of assembly, making stolen units easier to track and recover. It would also establish federal criminal penalties for the theft, sale, trafficking, or known purchase of stolen catalytic converters. NADA will continue to monitor the bill’s progress and provide timely updates to dealers, along with guidance on how they can work with their Congressional representatives to advance important, pro-dealer legislation. 11 NEW JERSEY auto retailer
Congress Overturns New Jersey’s EV Mandates A Win for Consumer Choice BY LAURA PERROTTA, PRESIDENT, NJ CAR For the past two years, New Jersey has been moving swiftly to align with California’s aggressive EV mandates. The State adopted regulations requiring that 100% of new light-duty vehicle sales be electric by 2035, and that all new Class 2b through 8 commercial truck sales meet the same requirement by 2036. These regulations moved too far, too fast. Consumers faced significant barriers to EV adoption — cost, range anxiety, and inadequate charging infrastructure. While incentives had initially spurred investment, New Jersey had begun to scale them back, and federal incentives were also under scrutiny. Unfortunately, the demand for EVs did not meet the targets for EV sales in New Jersey. Complicating matters further, the California Air Resources Board’s (CARB) Advanced Clean Cars II (ACCII) regulation created a fragmented national landscape. New Jersey residents could bypass these mandates simply by purchasing vehicles in neighboring states like Pennsylvania, where federal Environmental Protection Agency (EPA) rules prevailed. This would have put New Jersey dealers at a competitive disadvantage and jeopardized local jobs. The commercial vehicle mandates posed even greater challenges. Under the Advanced Clean Trucks (ACT) regulation, which took effect January 1, 2024, dealers were limited in their ability to sell diesel trucks unless they first met electric sales quotas. Yet, electric trucks cost nearly three times as much as diesel models, fall short in performance, and lack adequate publicly available commercial charging infrastructure, setting up our small business truck dealers and their customers to fail. In response, the U.S. Congress acted decisively. Lawmakers introduced three Congressional Review Act (CRA) resolutions — H.J.Res.87, 88, and 89 — targeting California’s gas car ban, diesel truck ban, and Low NOx emissions regulation. On June 12, 2025, President Trump signed these resolutions into law, effectively nullifying the mandates. As a result, New Jersey franchised new car and truck dealers will continue to offer EVs but will no longer be restricted from selling gas-powered or hybrid vehicles beyond 2035. For many, this marks a victory for consumer choice and economic practicality. NJ CAR is grateful for this much-needed relief. Powertrain adoption should be market-driven, not dictated by unrealistic timelines that ignore consumer demand and infrastructure limitations. 12 NEW JERSEY auto retailer
Focused on driving your business’ success Shift your dealership into high gear with Citrin Cooperman’s Dealership Industry Practice! Our team of dedicated professionals deliver industry insights and strategic solutions to help you accelerate business growth, adopt best practices, and stay ahead of the curve. Dealership Industry Team Members Wilfredo Fernandez Partner and Co-Practice Leader wfernandez@citrincooperman.com Ellen Kera Partner and Co-Practice Leader ekera@citrincooperman.com Philip Craft, Partner pcraft@citrincooperman.com Craig Todderud, Partner ctodderud@citrincooperman.com Ann Torno, Partner atorno@citrincooperman.com Christine Valaouras, Partner cvalaouras@citrincooperman.com 180 Park Avenue, Suite 200, Florham Park, NJ 07932 1133 Westchester Avenue, Suite N-328, White Plains, NY 10604 citrincooperman.com/Industries/ Automotive-Dealerships “Citrin Cooperman” is the brand under which Citrin Cooperman & Company, LLP, a licensed independent CPA firm, and Citrin Cooperman Advisors LLC serve clients’ business needs. The two firms operate as separate legal entities in an alternative practice structure. The entities of Citrin Cooperman & Company, LLP and Citrin Cooperman Advisors LLC are independent member firms of the Moore North America, Inc. (MNA) Association, which is itself a regional member of Moore Global Network Limited (MGNL). All the firms associated with MNA are independently owned and managed entities. Their membership in, or association with, MNA should not be construed as constituting or implying any partnership between them. Published 2025.
In a time of razor-thin margins, rising utility costs, and rapidly changing OEM mandates, New Jersey dealers are looking for one thing: control. Control over costs. Control over operations. Control over the future. Enter the NJ CAR Energy Alliance: a first-of-its-kind partnership built exclusively for New Jersey’s franchised new vehicle retailers. Designed by NJ CAR Services and backed by industry-leading energy providers, the Alliance is already helping dealers slash utility bills, stabilize energy costs, and prepare for the electric future — all with little or no upfront investment. THE DEALER DILEMMA: HIGH COSTS, NEW PRESSURES Running a dealership in 2025 isn’t what it used to be. OEMs are mandating EV infrastructure; utilities are raising rates; and outdated lighting, HVAC, and energy supply contracts are silently draining profits from your bottom line. That’s where NJ CAR saw an opportunity: Why not harness the buying-power of New Jersey’s auto dealers to drive down energy costs and reinvest the savings where they matter most? THREE ENERGY LEADERS. ONE SEAMLESS PROGRAM. The NJ CAR Energy Alliance brings together a trio of trusted partners to create a comprehensive, turnkey solution for energy savings: • Donnelly Energy: A trade ally of NJ Clean Energy, Donnelly handles LED lighting retrofits, HVAC upgrades, and deep energy audits, often with up to 80% rebates on qualified improvements. • Sprague Energy: One of the oldest and most trusted names in energy procurement, Sprague helps dealers lock in fixed-rate electricity and natural gas contracts, offering long-term protection from market volatility. The best part? All you need to get started is a single electric bill. • Go Green Energy Specialists: Experts in commercial solar installations, Go Green designs and installs rooftop solar systems that significantly lower utility costs and can boost a dealership’s sustainability image. Powering the Future How the NJ CAR Energy Alliance is Saving Dealers Thousands BY MIKE MADIA, SERVICES DIRECTOR, NJ CAR THE BOTTOM-LINE IMPACT For many dealers, the numbers are hard to ignore: • 50-90% reductions in energy bills • $250,000-$600,000+ in projected savings over 10 years • Immediate compliance with EV infrastructure mandates • Little to no upfront cost thanks to rebates, incentives, and financing WHY IT MATTERS This isn’t just about kilowatts and contracts. Every project through the NJ CAR Energy Alliance supports NJ CAR’s core mission: to serve and protect the franchised auto retail industry in Trenton and beyond. That means better advocacy, better compliance resources, and a stronger voice for every dealer in the state. HOW TO GET STARTED The process couldn’t be easier: Dealers simply submit a recent electric bill, and the NJ CAR Energy Alliance team takes it from there — analyzing opportunities, building a plan, and walking you through the best path forward. THE FUTURE IS BRIGHT — AND EFFICIENT Dealerships that act now aren’t just saving money; they’re positioning themselves to meet future requirements, serve EV customers, and reinvest in what matters most: growing their business. It’s time to stop renting your energy and start owning your future. To learn more or submit your bill for a free analysis, contact NJ CAR Services at energy@njcar.org or call us at (609) 883-5056. 14 NEW JERSEY auto retailer
Reflections on the TAP Pilot Building a Stronger Pathway for Automotive Technicians BY BRANDON JURAKHAN, WORKFORCE DEVELOPMENT MANAGER, NJ CAR The Technician Advancement Program (TAP) pilot has provided invaluable insights into how to create a sustainable, scalable, and impactful pre-apprenticeship initiative for aspiring automotive technicians in New Jersey. As we reflect on this foundational phase, several key pillars have emerged: specialized instruction, strategic dealership partnerships, digital outreach, community engagement, and securing external funding to support long-term growth. NJDOL AWARDS NJ CAR WITH PACE GRANT FOR TAP A major milestone during this pilot phase was securing a grant from the New Jersey Department of Labor & Workforce Development (NJDOL). This funding is a significant endorsement of TAP’s mission and provides essential resources to expand and enhance the program. With the Pre-Apprenticeship in Career Education (PACE) grant awarded to NJ CAR for TAP, we can invest more deeply in core components such as instructor development, curriculum enrichment, trainee support services, and strategic outreach efforts. This backing enables us to accelerate our efforts to build a robust talent pipeline for New Jersey’s automotive industry. KEY TAKEAWAYS FROM TAP PILOT One of the most important takeaways from the TAP pilot is the critical need for instructors who can simplify complex automotive concepts. As vehicle technology becomes more advanced and brand-specific, it’s not just technical knowledge that sets an instructor apart — it’s the ability to break down sophisticated systems into clear, understandable lessons that trainees can apply in real-world settings. The best instructors are not just experts; they are effective communicators and skilled mentors who make learning accessible and engaging. Because of the grant awarded by the NJDOL, we’re now positioned to recruit certified trainers through manufacturer partnerships and invest in the professional development of existing educators. This ensures our students receive high-quality instruction that turns complexity into confidence: an essential ingredient for long-term success in the field. Cultivating strong relationships with dealerships willing to commit to hiring and mentoring TAP graduates is equally essential to measuring the program’s effectiveness. The pilot of this program highlighted the value of dealership engagement not only for job placement but also for long-term career development. By partnering with dealerships that understand and invest in apprenticeship pathways, we can bridge the gap between foundational training and full-time employment. With this funding, NJ CAR is enabled to allocate resources to strengthening these partnerships — both trainees and dealerships are supported throughout the process. LOOKING FORWARD TO EXPANDING AND SCALING TAP IN NEW JERSEY In today’s digital-first environment, the pilot demonstrated the power of online tools to reach a broader, more diverse group of candidates. Traditional recruitment alone cannot meet the needs of an evolving and highly mobile workforce. Through targeted digital advertising, engaging social media campaigns, virtual open houses, and user-friendly application platforms, we have seen increased visibility and interest in TAP. The support of this grant allows us to further enhance our digital strategy to ensure our messaging reaches underserved and underrepresented communities across the State. Perhaps most importantly, the pilot highlighted the significance of deep community engagement. Local leaders such as educators, civic advocates, and workforce boards play a vital role in connecting us to potential trainees and fostering trust within their communities. These relationships ensure that TAP is not just a workforce training program but also a meaningful effort in community empowerment and economic development. The PACE grant also supports the expansion of these efforts, allowing us to build stronger local networks and increase outreach in communities where opportunity and access are most needed. The TAP pilot has laid the groundwork for a transformative initiative. With lessons learned, strong partnerships formed, and the PACE grant, we are well-positioned to scale our efforts. By investing in specialized instruction, forging deep employer relationships, embracing modern outreach methods, and partnering with local communities, TAP is set to become a powerful vehicle for workforce development and career advancement across New Jersey’s franchised new vehicle auto retail industry. 16 NEW JERSEY auto retailer
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On July 4, 2025, President Trump signed the “One Big Beautiful Bill” into law after the Senate revised bill was approved by the House with a vote of 218-214. The bill includes a variety of tax items that will impact auto dealer business taxes, personal income taxes, and estate and gift taxation. This article will highlight the pertinent areas of the One Big Beautiful Bill that will impact auto dealership businesses and owners. BUSINESS TAX PROVISIONS Section 168(k) “Bonus” Depreciation The bill permanently extends 100% bonus depreciation for qualified property acquired after January 19, 2025. For the first taxable year, dealerships can elect to apply the 40% bonus depreciation (for taxable year ending on December 31, 2025) or 100% bonus depreciation. This is a welcome change for dealerships as it would allow the entity flexibility in weighing the pros and cons of electing full 100% bonus depreciation or only electing to take 40%. It is important to recall that the depreciation laws vary by state. Many states, such as Massachusetts, Rhode Island, New Jersey, New York, California, and New Hampshire, do not conform to Section 168(k) bonus depreciation. Section 179 Deduction The bill increases the maximum allowable Section 179 deduction to $2.5 million. The deduction will be reduced by the amount by which the cost of the qualifying property exceeds $4 million. As dealerships are expanding their operations, opening new stores, and renovating existing stores, the increased 179 deduction allows dealers to immediately expense 100% of the cost basis of the asset placed in service. Updates to Section 163(j) and Adjusted Taxable Income (ATI) For tax years beginning after December 31, 2024, the calculation of ATI will return to EBITDA, allowing the addition of depreciation and amortization expense. This is a highly anticipated provision in the bill for auto dealers. The addition of depreciation and amortization will allow dealers to take advantage of bonus depreciation and preclude them from having to use the floor plan financing exception. This change will help dealers minimize their interest limitations. The bill also modifies the definition of “motor vehicle” to include towable trailers and campers. This allows the floor plan interest for these trailers and campers to be deductible. Before enactment, interest on trailers and campers was not included as floor plan financing interest. Dealerships should still evaluate the Section 163(j) interest limitations to determine if bonus depreciation is allowed for the year. Termination of Various Clean Energy Credits While prior proposals terminated various energy credits immediately, the final bill gives some extension to the allowable energy credits introduced under the Inflation Reduction Act. Dealers selling a large number of electric vehicles and participating in the IRS credit transfer program will be significantly impacted by the termination of these credits. Dealers should contact their customers to notify them of the changes to the clean vehicle credits and encourage them to complete their EV purchase before the credits expire. The following clean vehicle credits terminate for vehicles acquired after September 30, 2025: • Section 25(e) previously owned clean vehicle credit • Section 30(d) new clean vehicle credit • Section 45(w) qualified commercial clean vehicle credit. The credit for vehicles owned and placed in service by the dealership terminates for vehicles acquired and placed in service after September 30. What Auto Dealers Need to Know About the “One Big Beautiful Bill” BY KRISTIN REESE-SCALABRINO, CPA, TAX MANAGER, WITHUM The Section 30(c) alternative fuel vehicle refueling property credit (charging stations) terminates after June 30, 2026. However, to be allowed, the property installed in qualifying areas must be acquired before that date. Some dealerships may be utilizing certain energy-efficient properties in their store renovations or new construction. The credits associated with this energy-efficient property have changed: • Section 179D energy-efficient building deduction terminates for property in which the construction begins after June 30, 2026 • Section 45(y) clean electricity production credit and Section 48(e) clean electricity investment credit terminate for wind and solar facilities placed in service after December 31, 2027 Dealers who install solar or other energy-efficient properties should work with their contractors to ensure the property will be installed and placed in service prior to December 31, 2027. Pass-Through Entity Tax Even though prior proposals recommended limitations in pass-through entity tax deductions, the final bill does not limit the use of state-level pass-through entity tax as a SALT cap workaround. Dealerships can still participate in these state tax workarounds as they have previously. Reporting Requirements for 1099s and W2s The bill increased the 1099 information reporting threshold for certain payments to people engaged in a trade or business and 18 NEW JERSEY auto retailer
payments of remuneration for services to $2,000 per calendar year (up from $600). The threshold will be indexed for inflation in calendar years after 2026. To comply with the no-tax-on-overtime provision, dealer employers will be required to separately state the qualified overtime compensation paid to employees on their annual Form W-2. INDIVIDUAL TAX PROVISION The bill makes a variety of provisions from the Tax Cuts and Jobs Act (TCJA) permanent: • Reduced individual tax rates • Standard Deduction: Effective January 1, 2025, the standard deduction for single/MFS is $15,750, Head of Household is $23,625, and MFJ is $31,500. • Personal Exemptions: permanently zero • Section 199A Qualified Business Income Deduction: permanently 20% • Mortgage Interest Limitation: interest is limited to the first $750,000 of qualified home acquisition debt. Home Equity Line of Credit interest remains non-deductible SALT Deduction The bill temporarily increased the maximum state and local tax deduction for tax years 2025 through 2029 to $40,000 (indexed for inflation for 2026 through 2029). The deduction will phase out as the taxpayers’ Modified Adjusted Gross Income (MAGI) is over $500,000. The minimum deduction amount will be $10,000. After 2029, the maximum deduction drops back down to $10,000. No Tax on Overtime The bill provides a temporary deduction of $12,500 ($25,000 MFJ) for qualified overtime compensation received. The deduction will be phased out when Modified AGI exceeds $150,000 ($300,000 MFJ). The overtime pay must be separately stated on the individual’s W-2 form. Car Loan Interest Deduction For years 2025 through 2028, the bill allows a deduction of up to $10,000 per year for interest paid on a qualifying car loan. This deduction applies whether the individual itemizes or takes the standard deduction. Dealerships may see an increase in car sales resulting from this allowable deduction. To qualify, (1) the vehicle must be brand new (original use starts with the taxpayer), (2) the loan must be a first-lien car loan (leases are not eligible) incurred after December 31, 2024, (3) the vehicle must be for personal use, and (4) the vehicle must have its final assembly in the United States. The deduction will be phased out for taxpayers with a Modified AGI of $100,000 ($200,000 MFJ). Alternative Minimum Tax (AMT) Exemption The bill makes the higher exemption amounts of $88,100 for single filers and $137,000 for joint filers under TCJA permanent in 2026. The income thresholds for phaseout of the exemption revert to pre-TCJA levels of $500,000 ($1 million MFJ). The income thresholds will be indexed for inflation after 2026. The phaseout is increased to 50% of the amount by which a taxpayer’s AMT income exceeds the applicable exemption phaseout threshold. Dealership owners and other high-income taxpayers may be subject to the Alternative Minimum Tax and should consult with tax advisors to plan for this. Charitable Deductions The final bill includes provisions related to cash donations to qualified charitable organizations. • For taxpayers who do not itemize, the bill provides a permanent deduction beginning in 2025 of $1,000 for single filers or $2,000 MFJ. Donations to donor-advised funds are not eligible for this deduction • For taxpayers who itemize, the bill limits the cash charitable deduction available to those cash contributions that exceed 0.5% of the taxpayer’s contribution base (60% of the taxpayer’s adjusted gross income) ESTATE AND GIFT TAX PROVISION The bill permanently increased the estate tax exemption and lifetime gift exemption amounts to $15 million for single filers and $30 million for joint filers in 2026. After 2026, the exemption will be indexed for inflation. While this article has touched on many of the tax provisions included in the “One Big Beautiful Bill,” dealership businesses and owners may be affected by many other tax provisions. The bill is welcome relief for auto dealers, as many of the sunsetting TCJA items have been permanently extended. Please contact your Withum Tax Advisor if you have any additional questions or would like to discuss how the “One Big Beautiful Bill” affects your business or personal income taxes. Kristin Reese-Scalabrino is a Tax Manager at Withum and can be reached at kreesescalabrino@withum.com or by phone at (407) 308-3450. 19 NEW JERSEY auto retailer
Reinventing Dealer Support With a Mission That Matters BY MIKE MADIA, SERVICES DIRECTOR, NJ CAR In a rapidly evolving retail environment, New Jersey’s franchised auto dealers need more than just a supplier — they need a trusted partner who understands their business, advocates for their interests, and delivers real solutions. That’s where NJ CAR Services comes in. As the business arm of NJ CAR, NJ CAR Services exists for one reason: to support the success of New Jersey franchised new car and truck dealers. Every product we sell, every program we manage, and every dollar we earn is reinvested back into the organization to advance that mission. WHAT WE DO Whether it’s compliance forms, promotional products, or high-visibility lot signage, NJ CAR Services delivers the tools dealers rely on daily to run their businesses efficiently and professionally. Our product categories include: • State-Compliant Forms and Paper: From temporary tags to regulated contracts, we provide the materials dealers must have to stay compliant with New Jersey’s complex regulatory environment. • Promotional and Branded Items: We offer apparel, banners, giveaways, plate frames, and dealership branding essentials — all customizable and competitively priced. • Windshield Advertising and Lot Signage: Turn your lot into a selling machine with eye-catching, professional-grade visuals built for outdoor use. • Energy, Telecom, and Technology Programs: We negotiate vetted vendor partnerships that help dealers save money, improve efficiency, and stay ahead of the curve — all while generating royalty revenue that supports NJ CAR’s advocacy work. BUILT BY DEALERS, FOR DEALERS NJ CAR Services is not a private company looking to make a profit off the backs of retailers. We were built by dealers, for dealers. Every sale helps fund the Coalition’s critical work in Trenton and beyond, whether that’s fighting unfair legislation, supporting dealer rights, or offering expert legal and compliance guidance. This model makes NJ CAR Services unique in the industry — our success is your success. WHAT’S NEXT: A SMARTER, SIMPLER ONLINE EXPERIENCE We’re excited to announce that the NJ CAR Services website is getting a major upgrade focusing on speed, convenience, and ease of use for busy dealership staff. Here’s what’s coming soon: • Faster Search and Browsing: Quickly find the forms, tags, or branded items you need without clicking through dozens of pages. • Mobile-Friendly Ordering: Whether you’re on the lot, in the office, or working from a service bay, you’ll be able to place orders seamlessly from any device. • Smarter Product Categories and Filtering: Improved navigation and filtering mean less guesswork and faster checkouts. • Dealer-Only Visibility: NJ CAR members will have access to special pricing and exclusive products through a streamlined login experience. • Live Inventory and Order Tracking: Stay in control of your order history, shipping status, and frequently purchased items with a more intuitive dashboard. These changes reflect our ongoing commitment to putting the dealer first, removing friction, and making it easier for members to do business with us because we understand that time is money. WHY IT MATTERS You have to buy forms. You have to purchase temp tag paper. You need branded signs, shirts, and decals. Why not buy from the only supplier that reinvests in your success? With NJ CAR Services, you’re not just ordering products — you’re supporting the organization that fights for your business, trains your staff, and protects your license to operate in the most litigious state in the country. FINAL WORD As we look ahead, NJ CAR Services remains committed to delivering the tools, technology, and trusted partnerships that help New Jersey’s dealers thrive. Better products. Better pricing. Better by association. 20 NEW JERSEY auto retailer
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