Today, House and Senate letters led by Reps. Dan Kildee (D-Mich.), Jodey Arrington (R-Texas), and Sen. Sherrod Brown (D-Ohio), respectively, were sent to Treasury Secretary Janet Yellen urging her to grant temporary relief for businesses utilizing the last-in, first-out (LIFO) inventory accounting method who cannot maintain inventory due to global supply chain interruptions.
In an overwhelming show of support, the House LIFO recapture letter had 91 bipartisan signers (61D 30R), and the Democrat-only Senate letter had 20 signatures. Click here for the Senate press release.
NADA thanks all the dealers and ATAEs who helped secure support for this important dealer priority, especially in such a short timeframe. Special thanks to the Michigan, Texas and Ohio ATAEs/dealers for helping to secure Rep. Kildee, Rep. Arrington, and Sen. Brown, who are extremely influential members of Congress, to lead the letters.
Please thank your members of Congress who joined the letters. It was significant that amid round-the-clock infrastructure and tax bill negotiations, so many members made signing the letter a priority.
The congressional letters urge the Department of Treasury to support NADA’s petition for LIFO relief to use its authority under Section 473 of the Internal Revenue Code to allow businesses to replenish their inventory over three years instead of a one-year period, giving dealers time to restock as production normalizes. The NADA legislative office will continue to work with the regulatory affairs department to draw attention to the harmful impact of LIFO recapture on dealerships, replenishing inventory, and small business jobs.
NADA Legislative Affairs Committee