Late Friday, Feb. 4, Sen. Sherrod Brown (D-Ohio) and 18 Democratic colleagues sent a second, stronger NADA-backed letter to Treasury Secretary Janet Yellen urging the Department to use its clear authority under Sec. 473 to provide timely LIFO relief and for Treasury to respond to the request by Feb. 15. (See signatories, Sen. Brown’s press release – including OADA President Zach Doran’s quote.) We are grateful to all the dealers and ATAEs who helped with the time-sensitive request to secure Senate signatures.
NADA has encouraged members of Congress to urge the Treasury Department to provide LIFO recapture relief to dealers due to the unprecedented inventory declines caused by the pandemic and related supply chain disruptions. Those efforts generated support for similar Senate and House letters in November. The House bipartisan letter had 92 bipartisan signers, and the Democratic-only Senate letter had 20 signers.
The new Brown letter comes after the recent Alliance for Automotive Innovation letter to Treasury which documents that dealers’ current threat of LIFO recapture is directly and primarily attributable to the foreign disruption in the global supply chain. Also, the White House stated in a Fact Sheet released on Jan. 20 that pandemic-related disruptions to foreign semiconductor factories have resulted in the reduced production of automobiles.
In a recent letter to Treasury, NADA demonstrated that the conditions established by Treasury to utilize its authority and offer dealers temporary LIFO relief due to pandemic-related, global supply chain interruptions have clearly been satisfied.
We are thankful to Sen. Brown for continuing to champion this issue and for asking for a clear response from Treasury by Feb. 15. We will keep you updated on the latest developments.
Chairman, NADA Legislative Affairs Committee