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Tax relief for new car dealers due to supply chain disruptions

This Act aims to ease tax burdens for new motor vehicle dealers using the LIFO method who experienced inventory liquidations during specified taxable years. Dealers may elect not to recognize income solely attributable to such qualified liquidation in the specified year, allowing for the deferral of tax liabilities. The Act defines a replacement period, giving dealers until the taxable year ending before January 1, 2026, to replenish their inventory.
Key points
Tax changes: New motor vehicle dealers can elect not to recognize income from inventory liquidations for taxable years ending after March 12, 2020, and before January 1, 2022.
Extended replacement period: The replacement period ends with the taxable year ending before January 1, 2026.
Failure to replace: If a dealer fails to replace the liquidated vehicles within the replacement period, they must increase their gross income by the amount that would have been recognized, plus interest.
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Additional Information
Print number: 118_S_443
Sponsor: Sen. Brown, Sherrod [D-OH]
Process start date: 2023-02-15
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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_S_443.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-02-15.

What are the main provisions?

Key points include:

  • Tax changes: New motor vehicle dealers can elect not to recognize income from inventory liquidations for taxable years ending after March 12, 2020, and before January 1, 2022.
  • Extended replacement period: The replacement period ends with the taxable year ending before January 1, 2026.
  • Failure to replace: If a dealer fails to replace the liquidated vehicles within the replacement period, they must increase their gross income by the amount that would have been recognized, 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 Sen. Brown, Sherrod [D-OH].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

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

CATEGORIES

Taxes Economy Transport