Yesterday evening, the Senate passed S. 4105, the “Supply Chain Disruptions Relief Act,” important bipartisan legislation that would provide relief to dealers on LIFO impacted by the pandemic and supply-chain issues. The bill passed the senate without opposition.
The Senate took this action directly after it was clear no business tax provisions were included in the large government spending bill, which also passed the Senate yesterday. Senate passage of this bill demonstrates Congressional intent to resolve the LIFO relief issue legislatively.
“Senate passage of the bill is great progress to provide dealers on LIFO much needed relief due to the pandemic and supply chain issues,” said NADA President and CEO Mike Stanton.
For LIFO relief to become law, the House companion bill (H.R. 7382) must pass the House before the end of its legislative session. There may also be an additional procedural step required to clear the bill for the president’s signature.
The House bill has 174 cosponsors and enjoys broad bipartisan support. While there are no substantive objections to this legislation, the House is operating in a very tight time frame to get home for the holidays and to avert incoming winter storms. NADA is working to overcome any process complications in the House.
For more information, see NADA’s LIFO issue brief.