summary
Introduced
04/28/2022
04/28/2022
In Committee
04/28/2022
04/28/2022
Crossed Over
12/23/2022
12/23/2022
Passed
Dead
01/03/2023
01/03/2023
Introduced Session
117th Congress
Bill Summary
AN ACT To treat certain liquidations of new motor vehicle inventory as qualified liquidations of LIFO inventory for purposes of the Internal Revenue Code of 1986.
AI Summary
This bill, the Supply Chain Disruptions Relief Act, aims to provide relief to dealers of new motor vehicles who have experienced liquidations of their LIFO (Last-In, First-Out) inventory due to supply chain disruptions during the COVID-19 pandemic. The key provisions of the bill include:
1. Treating certain liquidations of new motor vehicle inventory as qualified liquidations under LIFO, allowing dealers to avoid recognizing income solely attributable to such liquidations in the specified taxable year (2020-2021).
2. Providing dealers the option to elect a replacement period of up to 5 years (ending no later than 2026) to replace the liquidated vehicles without fully recognizing the income from the liquidation.
3. Allowing dealers who have already filed their tax returns for the specified taxable year to make the election to defer income recognition as a change in accounting method, with the consent of the Secretary of the Treasury.
The bill aims to provide relief to new motor vehicle dealers who faced disruptions to their supply chains during the pandemic, helping them manage the tax implications of liquidating their LIFO inventory.
Committee Categories
Budget and Finance
Sponsors (60)
Sherrod Brown (D)*,
Tammy Baldwin (D),
John Barrasso (R),
Marsha Blackburn (R),
Richard Blumenthal (D),
Roy Blunt (R),
John Boozman (R),
Mike Braun (R),
Richard Burr (R),
Shelley Moore Capito (R),
Ben Cardin (D),
Tom Carper (D),
Bob Casey (D),
Bill Cassidy (R),
Chris Coons (D),
John Cornyn (R),
Catherine Cortez Masto (D),
Kevin Cramer (R),
Steve Daines (R),
Tammy Duckworth (D),
Joni Ernst (R),
Dianne Feinstein (D),
Deb Fischer (R),
Chuck Grassley (R),
Bill Hagerty (R),
Maggie Hassan (D),
John Hoeven (R),
Cindy Hyde-Smith (R),
James Inhofe (R),
Ron Johnson (R),
Mark Kelly (D),
Angus King (I),
Amy Klobuchar (D),
Cynthia Lummis (R),
Roger Marshall (R),
Jerry Moran (R),
Patty Murray (D),
Alex Padilla (D),
Rand Paul (R),
Gary Peters (D),
Rob Portman (R),
Jim Risch (R),
Jacky Rosen (D),
Mike Rounds (R),
Marco Rubio (R),
Ben Sasse (R),
Chuck Schumer (D),
Rick Scott (R),
Tim Scott (R),
Jeanne Shaheen (D),
Tina Smith (D),
Debbie Stabenow (D),
Dan Sullivan (R),
Jon Tester (D),
John Thune (R),
Thom Tillis (R),
Chris Van Hollen (D),
Raphael Warnock (D),
Roger Wicker (R),
Todd Young (R),
Last Action
Message on Senate action sent to the House. (on 12/23/2022)
Official Document
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