U.S Sens. Shelley Moore Capito (R-WV) and Joe Manchin (D-WV) joined with colleagues in support of legislation introduced by U.S. Sens. Tim Scott (R-SC) and Sherrod Brown (D-OH) that would address auto inventory shortages due to supply chain issues.
The Supply Chain Disruptions Relief Act would allow auto dealers to delay the recognition of some 2020 and 2021 income when dealers faced pandemic-driven inventory shortfalls for new vehicles.
“Soaring prices and supply chain disruptions have created a significant strain on American families. I’m proud to join with a bipartisan coalition of colleagues to put forth a solution that would bring needed relief and address West Virginians’ issues regarding vehicle purchases,” Capito said.
Lawmakers said the bill would provide a statutory determination that the requirements for a qualified liquidation have been satisfied for Last in First Out legislation. Additionally, the bill would expand the period to replenish inventory and compute income until 2026 and direct the U.S. Treasury Department to provide guidance on how dealers can calculate the new income during that replacement period.
“Russia’s war in Ukraine has drastically disrupted supply chains around the world, and it is critical that we protect American auto dealers from the increased financial burdens of inventory shortages. As the birthplace of Henry Ford, West Virginia has always been an automotive powerhouse, and I’m proud to join this bipartisan effort to provide tax relief to auto dealers across the state and country,” Manchin said. “I encourage my colleagues on both sides of the aisle to support this important legislation, and I will continue advocating for the economic success of American auto dealers.”