Law & Order

Senate republicans and democrats continue to have major differences over tax legislation, which is holding up retroactive extension of the Research and Development Tax Credit which expired in December 2007. SEMA and other groups have been lobbying Congress to restore the tax credit and make it permanent. While there is general agreement that the credit should be renewed, there is disagreement on how it should be financed. The democrats want to pay for the credits with revenue-raising measures that are generally opposed by Senate republicans.

The National Highway Traffic Safety Administration (NHTSA) has expanded the New Car Assessment Program (NCAP) to include a new “overall crashworthiness rating” which combines the front-end, side and rollover test results. Initiated in 1979, the NCAP utilizes a five-star rating system to provide consumers with basic safety information about a new vehicle and foster comparison shopping between different makes and models. 

Alleviating the mounting cost pressure of health care premiums on SEMA members and their workers remains a top SEMA priority. Legislation that would have permitted trade associations to offer small-business health plans (SBHPs) based on national pooling arrangements was narrowly defeated in 2006. Federal lawmakers are still seeking a consensus approach to resolve issues that produced the stalemate two years ago, such as conflicts over federal/state oversight and requiring minimum policy mandates. 

SEMA defeated a bill in the Vermont State Senate that would have implemented a vehicle scrappage program and financed it with a progressive purchase and use tax and higher registration fees for some new motor vehicles based on fuel-efficiency ratings. Funds collected under the program would have been used to dismantle vehicles deemed by the state to be “clunkers,” regardless of their historical value or collector interest.

Filler for eNews

SEMA defeated two Hawaii bills that sought to tax vehicle owners in an attempt to reduce motor-vehicle emissions. The first bill would have imposed a new-car surcharge tax, which would have escalated based on carbon emissions. Depending on the vehicle purchased, this surcharge could have required owners to pay up to $2,500 more for the vehicle.

On the recent Hot Rod Magazine Power Tour, SEMA Action Network (SAN) Director Jason Tolleson met with numerous SAN members who each voiced their support for the Association’s legislative grassroots effort. With more than 30,000 members in the United States and Canada, including 4,000 car clubs, SAN members receive free updates on pending legislative issues in their state or province.

Soaring gas prices caused the Internal Revenue Service (IRS) to raise the standard business-mileage deduction by 8 cents to 58.5 cents for all business miles driven between July 1 and December 31, 2008. 

It is unusual for the IRS to make a mid-year adjustment. The mileage calculation also includes all other aspects of buying and operating a vehicle such as depreciation, insurance, and tires. Businesses and individuals who use their car for business have the option of using the standard rate in lieu of keeping records of their actual expenses.

SEMA model legislation (A.B. 2836) that would create a vehicle registration classification for street rods and custom vehicles and provide for special license plates for these vehicles was introduced in the New Jersey Assembly. 

The legislation defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows kit cars and replica vehicles to be assigned a certificate of title bearing the same model year designation the body of the vehicle most closely resembles.

Proponents of the latest version of climate change legislation (S. 3036) failed to get the 60 votes necessary for passage in the U.S. Senate, effectively ending any further consideration this year. Supporters plan to make it an election-year issue to lay the groundwork for a new climate debate in 2009. There is a growing consensus in Congress that there is a need to limit and reduce greenhouse gases (GHG).