ASA Endorses Bipartisan Tax Framework

ASA Endorses Bipartisan Tax Framework

The Automotive Service Association says the legislation is beneficial for independent automotive repair businesses.

The Automotive Service Association (ASA) has endorsed the new bipartisan tax framework proposed by U.S. Senate Finance Committee Chairman Ron Wyden, a Democrat from Oregon, and U.S. House Ways and Means Committee Chairman Jason Smith, a Republican from Missouri, as beneficial for independent automotive repair businesses. These businesses are grappling with challenges such as adapting to new automotive technologies, a shortage of skilled technicians and high interest rates.

According to the ASA, the Tax Relief for American Families and Workers Act of 2024 could provide crucial financial relief. The automotive repair industry is facing a significant transformation with the introduction of new technologies like electric vehicles, telematics and autonomous driving systems, necessitating substantial investments in facility and equipment upgrades. Under the proposed tax legislation, interest paid on loans for these upgrades would be deductible. Additionally, the bill suggests a 100 percent bonus depreciation allowance for qualifying property acquired and used between Dec. 31, 2022, and Jan. 1, 2026, and an increase in the maximum amount a business can expense for such property from $1 million to $1.29 million, adjusting for inflation after 2024.

The proposed framework also includes an expansion of the Child Tax Credit, revising the calculation of the maximum refundable credit based on the number of children in a household and increasing the per-child limit to $1,800 for the 2023 tax year, with annual inflation adjustments through 2025.

Scott Benavidez, president of the ASA Board of Directors, emphasized the challenges faced by independent repair shops, saying, “Many independent repairers have had to spend heavily on new equipment and other investments just so their businesses can stay afloat and relevant in this turbulent automotive environment. Personally, I’ve had to invest in a whole host of specialty equipment for my repair shop over the last few years. It’s never been harder for independent repair shops to stay in business. The Tax Relief for American Families and Workers Act of 2024 would make it easier for businesses like mine to continue providing high-quality service to our communities for years to come.”

Bob Redding, ASA’s Washington, D.C. representative, also voiced his support, stating, “I commend Chairman Wyden and Chairman Smith for reaching this important bipartisan legislative tax agreement. Across the United States, Independent automotive repair shops – as well as other small businesses and their employees – stand to benefit from the proposed revisions to the tax code. The framework provides some needed relief to independent automotive repair facilities. ASA hopes that Congress will emulate the leadership demonstrated by Chairmen Wyden and Smith by working expeditiously to send the legislation to the president’s desk.”

You May Also Like

Auto Care Association Welcomes GAO Report on Vehicle Repair Restrictions

Auto Care is renewing its call for Congress to advance federal Right to Repair legislation that protects independent business owners and consumers.

Right to repair 2

Following the release of a new Government Accountability Office (GAO) report detailing how automaker restrictions on vehicle data are creating barriers to repair vehicles, the Auto Care Association is renewing its call for Congress to advance federal right to repair legislation that protects independent business owners and consumers.

MEMA Applauds the EPA on Light- and Medium-Duty Vehicle Emission Standards

MEMA says the EPA final rule includes an amended and more comprehensive analysis of technological alternatives.

Opposition Grows for California’s Mandate Banning New Gas-Powered Vehicle Sales
Maryland Teamsters Call for Passage of HB 1447

The legislation would protect middle-class jobs and motorist safety, according to the International Brotherhood of Teamsters.

Maryland Teamsters Call for Passage of HB 1447
$78B Pro-Business Tax Bill Passes House, Awaits Senate

The bill aims to reinstate tax incentives for R&D and small business investments, along with other measures.

MANN+HUMMEL NA Aftermarket Shows Right to Repair Support

Representatives from MANN+HUMMEL’s North American aftermarket brands recently visited Capitol Hill to express their support for H.R. 906.

Other Posts
MEMA Applauds Biden Administration Initiative to Support Suppliers

The announcement of more than $100 million in funding and a suite of strategic actions is in support of small- and medium-sized auto parts manufacturers and autoworkers.

MEMA Applauds Biden Administration Initiative to Support Suppliers
DOJ, FTC Support MEMA Aftermarket Suppliers’ Petition

The petition expands consumer access to vehicle operational, diagnostic and telematics data.

MEMA Issues Statement on Tax Relief for Working Families Act

This measure contains the restoration of one year deductibility of research and development expenses, a key legislative priority for the association.

SEMA Urges Members to Support Tax Relief Bill

The Tax Relief for American Families and Workers Act of 2024 benefits specialty automotive aftermarket businesses, according to SEMA.

SEMA Action Network