offer critical protections and stability in the meantime. Additionally, new legislation lays the groundwork for parishes to explore phasing out inventory taxes entirely, paving the way for a more equitable and competitive tax environment. The governor’s plan also includes several changes aimed at improving Louisiana’s tax landscape. The plan includes eliminating the corporate franchise tax and reducing the corporate income tax rate from 7.5% to 5.5%, which is a significant step forward for businesses. For individuals, the plan simplifies the personal income tax system by introducing a flat 3% rate instead of the current three-tiered brackets and increases the standard deduction. FEDERAL POLICY At the federal level, we are optimistic that the incoming Trump administration will prioritize many of the critical issues facing the automotive industry, including FTC’s Vehicle Shopping Rule and the EPA’s greenhouse gas emission standards. His historic victory over the Harris-Waltz ticket — not only securing the electoral college but also the popular vote, a first for a Republican since 2004 — signals a mandate for change. It is our hope that the administration will begin addressing the burdensome regulatory environment impacting our industry as early as Jan. 20, 2025. THE ROAD AHEAD Looking ahead to 2025, we know new challenges will arise, including continued Tesla litigation and further tax reform measures during the fiscal session in April. We are also closely monitoring issues with legacy manufacturers and working to address your concerns. Rest assured, LADA is here for you — fighting every step of the way in Baton Rouge, Washington and the courtroom — to ensure your businesses remain protected and prosperous. Thank you for your continued support of LADA and your dedication to our industry. Together, we have accomplished so much in 2024, and I look forward to all we will achieve in the year ahead. sales are a cheaper alternative. The study underscores what we’ve always known: Louisiana’s franchised dealerships provide exceptional value — not just to consumers, but to entire communities through job creation, tax revenue and charitable contributions. THE TESLA LAWSUIT: DEFENDING THE FRANCHISE SYSTEM In the legal arena, the Tesla lawsuit against LADA and the Louisiana Motor Vehicle Commission (LMVC) continues to pose a serious threat to the franchise model nationwide. While the United States Court of Appeals for the Fifth Circuit upheld the district court’s dismissal of Tesla’s equal-protection claim — a significant victory — it revived Tesla’s antitrust claim against LADA and due-process claim against the LMVC commissioners, sending these issues back to the district court. This litigation challenges dealer-manufacturer relationships, the Noerr-Pennington doctrine — which shields associations from antitrust liability for lobbying efforts — and regulatory bodies where market participants serve, calling into question their constitutional legitimacy on a national scale. LADA remains committed to defending the franchise model and advocating for your interests in this ongoing battle. TAX REFORM: CRITICAL AMENDMENTS SECURED On the tax reform front, we navigated one of the most significant challenges of the year: the administration’s original proposal to repeal the inventory tax credit without eliminating the inventory tax itself. Such a move would have been devastating to small businesses across Louisiana, including dealerships. Through our collaborative efforts with Governor Landry, Secretary of Revenue Richard Nelson and key legislators, we emphasized the critical importance of retaining the inventory tax credit to support small businesses — especially dealerships that manage substantial inventory while operating on narrow margins. This advocacy helped secure critical amendments that ensure pass-through entities — such as LLCs, S-corporations and partnerships — retain the inventory tax credit indefinitely, while C-corporations will benefit from the credit, which sunsets in July 2026. Although the ultimate goal remains the complete elimination of inventory taxes, these amendments 5
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