The current EPA proposal ignores real-world consumer demand and, as a result, goes too far, too fast. Consumers are not moving as fast as the proposed regulations, largely because there are other changes needed to make EVs broadly attractive to consumers, i.e., affordability, sufficient and reliable charging infrastructure, and acceptable charging speeds. A single national standard for achievable greenhouse gas regulations that leverages consumer demand is needed to produce the fleet turnover necessary to deliver environmental benefits. NADA supports language in the FY 24 House Interior-Environment appropriations bill (H.R. 4821) to prevent the EPA from spending money to finalize this unrealistic EV mandate for one year. H.R. 4821 passed the House on Nov. 3. Congress should enact legislation that stops EPA from finalizing its unreasonable EV mandate, which would severely limit the ability of consumers to choose a new vehicle that meets their budget and needs. Pass the Non-Controversial “Supply Chain Disruptions Relief Act” (H.R. 700/S. 443) Under existing law, the Treasury Department has the authority to allow businesses that utilize the last-in first-out (LIFO) accounting method extended time to replace inventory if a “major foreign trade interruption” makes inventory replacement difficult or impossible. Pandemic-related global disruptions and reduced auto production made it impossible for dealers to replenish new vehicle supply. Despite broad bipartisan support for the Treasury’s use of its existing authority regarding vehicle inventory, the Treasury declined as it believes additional legislative authority is needed. Under the “Supply Chain Disruptions Relief Act” (H.R. 700/S. 443), Congress would determine that the conditions necessary to grant additional time to replace vehicle inventories under existing law due to pandemic-related foreign trade interruptions have been met. As a result of supply chain disruptions beyond the dealers’ control, LIFO recapture triggered significant, unexpected tax liability that continues to harm many smaller, multi-generational family dealerships. Members of Congress should cosponsor the “Supply Chain Disruptions Relief Act” and urge House and Senate leadership to pass this technical and non-controversial legislation at the earliest opportunity. 9 Illinois Automobile Dealer News
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