Simpson Backs Tax Relief Bill for Auto Dealers

Washington, D.C. – Idaho Congressman Mike Simpson recently cosponsored H.R. 700, the Supply Chain Disruptions Relief Act, legislation that would provide needed short-term relief to help auto dealers recover from severe inventory shortages due to global supply chain issues.

“Between the recent pandemic and ongoing global supply chain disruptions, auto dealers are in a tough spot to keep up with tax liabilities demanded by the industry’s standard Last-In, First-Out (LIFO) accounting measures for new inventory,” said Simpson. “Idaho’s auto businesses should not be held hostage by increasing prices, shipping delays, and other factors entirely out of their control.”

Congressman Simpson has historically cosponsored this bill, which was reintroduced in the 118^th Congress by Representatives Jodey Arrington (R-TX) and Daniel Kildee (D-MI).  The legislation would authorize the Treasury to provide relief to businesses struggling to replace inventory due to factors outside of their control, including the semiconductor shortage.  The Treasury has existing authority to exercise this option for our nation’s small businesses in cases of “major foreign trade interruption” but has declined to do recently, citing a lack of legislative authority. 

“I am proud to back Idaho’s auto businesses by cosponsoring this bipartisan, straightforward bill and look forward to its consideration in Congress,” said Simpson.

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