SEMA is encouraging its members to reach out to their representatives and ask for their support on H.R. 7024, the Tax Relief for American Families and Workers Act of 2024. The bill, which The U.S. House of Representatives is expected to vote on this week, benefits specialty automotive aftermarket businesses, according to SEMA, by allowing for the immediate expensing of R&D and investments in equipment and increasing the small business expensing cap by nearly 30%.
SEMA said the legislation would further help aftermarket businesses in the following ways:
- Research and development (R&D) expensing: Businesses of all sizes can immediately deduct the cost of their U.S.-based R&D investments instead of over five years, encouraging American innovation and improving our competitive position versus China and the rest of the world.
- Interest deductibility: Continued flexibility for businesses forced to borrow at higher interest rates to meet their payroll obligations and expand their operations.
- 100% expensing: Restore full and immediate expensing for investments in machines, equipment and vehicles.
- Expand small business expensing cap: Increase the amount of investment that a small business can immediately write off to $1.29 million, an increase above the $1 million cap enacted in 2017.
- Cut red tape for small businesses: Adjust the reporting threshold for businesses that use subcontract labor from $600 to $1,000 and index for inflation, the first update to the threshold since the 1950s.
SEMA is encouraging its members to review the bill overview and contact their lawmakers here.
