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
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