Brown discusses Supply Chain Disruptions Relief Act
Published 12:00 am Monday, February 20, 2023
Says bill would help auto dealers with inventory shortages due to global issues
WASHINGTON, D.C. – U.S. Sen. Sherrod Brown, D-Ohio, spoke on Wednesday about his Supply Chain Disruptions Relief Act.
Brown and Sen. Tim Scott, R-South Carolina, introduced the bipartisan legislation this week.
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Brown’s office said auto dealers continue to face dramatic and unprecedented inventory shortages as a result of pandemic-related foreign supply chain disruptions, and that the Supply Chain Disruptions Relief Act will grant tax relief to auto dealers facing these challenges and inventory shortages by providing dealerships up to three years to replace their inventory before having to pay taxes on inventory sales from 2020 or 2021.
“This legislation will grant much needed tax relief to auto dealers facing unique supply chain challenges,” Brown said. “This bill will mean those dealers – that are often small, family-owned businesses – get a temporary break – and a chance to spend their funds on replacing their depleted inventories and investing in their workers.”
With the economy recovering and strong job growth and consumer demand, Brown said he wants to make sure small businesses have the support they need to survive and thrive.
Brown was joined on the call by Zach Doran, President of the Ohio Automobile Dealers Association.
“As a result of supply chain disruptions beyond the dealers’ control, LIFO recapture will trigger significant, unexpected tax liability, imposing massive tax bills on small businesses that could otherwise be used to invest in workers, EV infrastructure, and replenishing vehicle inventory as it becomes more available,” Doran said. “We appreciate Senator Brown’s recognition of the impact on small businesses and look forward to working with him to get this legislation passed.”