ASA Applauds U.S. House Passage of Bipartisan Tax Bill

ASA Applauds U.S. House Passage of Bipartisan Tax Bill

The legislation would allow businesses to expense more business costs for tax deduction, provide relief to businesses impacted by certain disasters and expand the Child Tax Credit.

The Automotive Service Association (ASA) applauds and expresses its gratitude to the U.S. House of Representatives for passing H.R. 7024, the bipartisan Tax Relief for American Families and Workers Act of 2024

Introduced by U.S. House Ways and Means Committee Chairman Jason Smith (R-MO) and U.S. Senate Finance Committee Chairman Ron Wyden (D-OR), the bill passed the full house with 357 votes in favor and 70 votes against. If enacted, provisions in the Tax Relief for American Families and Workers Act of 2024 could provide much needed financial relief to ASA members. ASA urges the Senate to consider and pass this legislation as soon as possible.

Independent automotive repair businesses are currently confronting a litany of unique pressures that undermine their potential to thrive. Rapidly advancing automotive technologies constitute one of the greatest challenges. To continue serving their customers, repairers have had and will need to continue to invest in costly facility and equipment upgrades. Some of these expenditures may require assuming debt. This tax proposal would:

  • Reclassify interest paid on certain business loans as allowable deductions
  • Provide for a 100% bonus depreciation allowance for qualified property — such as equipment and vehicles — acquired and placed in service between Dec. 31, 2022, and Jan. 1, 2026
  • Raise the maximum amount a business may expense for qualifying property from $1 million (reduced by the amount by which the cost exceeds $2.5 million) to $1.29 million (reduced by the amount by which the cost exceeds $3.22 million), adjusting for inflation for taxable years after 2024

One provision in the framework of significant consequence to many repair business’ employees is the expansion to the Child Tax Credit. The bill would:

  • Change how the maximum refundable credit is calculated by including consideration for the number of children in a household
  • Increase the maximum per-child limit from $1,600 to $1,800 for tax year 2023, along with annual increases to the cap adjusted for inflation each ensuing year through 2025

“Advancing the Tax Relief for American Families and Workers Act closer to enactment is a huge win for independent automotive repairers,” said Bob Redding, ASA Washington, DC Representative. “The U.S. House of Representatives sent a strong message, through yesterday’s vote, that small businesses — like those represented by ASA — deserve a chance to thrive. H.R. 7024 helps make that vision possible. Many thanks to U.S. House Ways and Means Chairman Jason Smith for his leadership in putting this package together. ASA eagerly awaits the Senate’s consideration and passage of this bill so that it may ultimately receive the President’s signature.”

For more information on ASA, visit asashop.org.

You May Also Like

Maryland Passes New Calibration Law

S.B. 793 establishes consumer protections related to the repair or replacement of glass on motor vehicles equipped with ADAS.

The Maryland state legislature recently passed S.B. 793, a bill establishing consumer protections related to the repair or replacement of glass on motor vehicles equipped with an advanced driver-assistance system (ADAS).

The bill states that before repairing or replacing motor vehicle glass, if the vehicle is equipped with ADAS, a motor vehicle safety glass facility (someone who repairs or replaces vehicle glass and provides recalibration of ADAS) shall:

ASA Calls on Texas Legislature to Oppose H.B. 3297

ASA says bill would end Texas vehicle safety inspections and make roads less safe.

ABPA Opposes Texas Crash Parts Bill

The ABPA believes Texas Senate Bill 1083 will adversely affect Texas drivers as it would establish a 36-month restriction against the use of alternative parts when OEM repair procedures are mandated.

Eight New Bipartisan Co-Sponsors Sign On to Support REPAIR Act

The CAR Coalition, MEMA Aftermarket, Auto Care Association and SEMA are applauding a new group of bipartisan cosponsors of the REPAIR Act (H.R. 906).

CAR Coalition Applauds Reintroduction of SMART Act

The CAR Coalition believes the SMART Act will empower consumers to choose quality, safe and affordable aftermarket car parts, while respecting the intellectual property rights of automakers.

Other Posts

ASA Applauds Regulatory Proposal that Excludes Collision Repairers

The proposal would have increased required reporting under a revised Air Emissions Reporting Requirements (AERR) regulation.

ASA Announces 2023 Board of Directors

The ASA announced changes to its board of directors following its annual business meeting.

ASA Approves OEM Repair Procedures Policy

Statement stresses that insurers should account for time spent on OEM repair procedure research in estimates.

ASA’s Scott Benavidez Testifies before U.S. House Judiciary Committee

Benavidez touts ASA’s right-to-repair agreement with automakers and expresses concern with lack of quality standard provisions in SMART Act.