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Supply Chain Disruptions Relief Act

This bill treats certain liquidations of new motor vehicle inventory as qualified liquidations of LIFO inventory for purposes of the Internal Revenue Code. It allows dealers to elect not to recognize income solely attributable to such liquidation for a specified taxable year. The replacement period for inventory ends with the taxable year ending before January 1, 2026.
Key points
The relief applies to liquidation years ending after March 12, 2020, and before January 1, 2022.
Dealers may elect not to recognize income solely attributable to the qualified liquidation in the specified taxable year.
If liquidated vehicles are not replaced by the end of the replacement period (before Jan 1, 2026), the taxpayer must increase gross income by the deferred amount plus interest.
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Additional Information
Print number: 118_HR_700
Sponsor: Rep. Arrington, Jodey C. [R-TX-19]
Process start date: 2023-02-01
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OFFICIAL LEGAL TITLE

Supply Chain Disruptions Relief Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_700.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-02-01.

What are the main provisions?

Key points include:

  • The relief applies to liquidation years ending after March 12, 2020, and before January 1, 2022.
  • Dealers may elect not to recognize income solely attributable to the qualified liquidation in the specified taxable year.
  • If liquidated vehicles are not replaced by the end of the replacement period (before Jan 1, 2026), the taxpayer must increase gross income by the deferred amount plus interest.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Arrington, Jodey C. [R-TX-19].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

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Taxes Economy