The Motor & Equipment Manufacturers Association has issued an alert notifying members of the automotive aftermarket that the U.S. House and Senate have convened a conference committee to reconcile differences between the House-passed America COMPETES Act (H.R. 4521) and the Senate-passed United States Innovation and Competition Act (USICA) (S. 1260).
According to the MEMA Alert, these two bills include several competitiveness provisions to mitigate the supply chain crises that are impacting motor vehicle parts manufacturers, including:
- The CHIPS Act to provide $52 billion in emergency funding for semiconductor fab construction and research and development (R&D) for the sector. This funding includes a $2 billion legacy chip preference for the motor vehicle and parts industry and full eligibility for all CHIPS programs for mature node motor vehicle grade chips producers.
- A comprehensive China Section 301 tariff exclusion process. A robust exclusion process, coupled with the current formal review process for all China 301 tariffs, will address some of the pricing and supply chain pressures that motor vehicle parts producers face.
- The Ocean Shipping Reform Act (OSRA) to address detention and demurrage and other anti-competitive practices that cause port delays.
- Restoration of first-year R&D expense deductibility, which expired on December 31, 2021. Full deductibility will place the U.S. on a level R&D playing field.
- Provisions focused on intellectual property rights (IPR) protections including the SHOP SAFE Act, the INFORM Consumers Act, and language enhancing the Customs and Border Protection authority to share information regarding potential counterfeit imports with relevant IP owners.
MEMA is encouraging aftermarket constituents to urge their Senators and Representative to strengthen supply chains and U.S. competitiveness by passing legislation now. Use MEMA’s one-click system to generate a letter to your legislators.