The laws and regulations that govern how SEMA members do business have an increased and growing impact on the way automotive specialty-equipment products are made, distributed and marketed. As the nation and our industry struggle with a balky economy, SEMA’s charge is to stay on top of every relevant state and federal matter of consequence to its membership to ensure the best possible outcome. The following are just a few examples of critical legislative/regulatory issues that the government affairs office was involved in this year.

Here is a comprehensive review of these issues.  

The next-generation BMW 1-Series is due to arrive as early as its 2012 model year, says spy shooter Brenda Priddy. And the next-gen effort is likely to lead with this five-door hatchback. Currently, only the coupe and convertible are sold in the United States, but it's too early to speculate on BMW's plans for the next-gen 1-Series variants.

Priddy: "According to the German publication AutoBild, who spoke to BMW's product development chief Klaus Draeger, BMW is keeping to the recent philosophy of quickly developing new segments. Although a decision has not been made yet, the new 1-Series lineup may also feature a type of elongated 'shooting-brake' two-door wagon/hatch variant."

The existing BMW and PSA Group alliance, which already produces engines for MINI, will be building engines ranging from 1.4L to 3.0L for the next-gen 1-Series. Turbos are almost certainly on the list, but an M version is said to be out of the question again. “Green” models, such as low-polluting diesels and hybrids, are also expected.

Photos copyright Brenda Priddy & Company. Reuse or reproduction without copyright holder's consent is prohibited.

The next-generation BMW 1-Series is due to arrive as early as its 2012 model year, says spy shooter Brenda Priddy. And the next-gen effort is likely to lead with this five-door hatchback. Currently, only the coupe and convertible are sold in the United States, but it's too early to speculate on BMW's plans for the next-gen 1-Series variants.

Priddy: "According to the German publication AutoBild, who spoke to BMW's product development chief Klaus Draeger, BMW is keeping to the recent philosophy of quickly developing new segments. Although a decision has not been made yet, the new 1-Series lineup may also feature a type of elongated 'shooting-brake' two-door wagon/hatch variant."

The existing BMW and PSA Group alliance, which already produces engines for MINI, will be building engines ranging from 1.4L to 3.0L for the next-gen 1-Series. Turbos are almost certainly on the list, but an M version is said to be out of the question again. “Green” models, such as low-polluting diesels and hybrids, are also expected.

Photos copyright Brenda Priddy & Company. Reuse or reproduction without copyright holder's consent is prohibited.

The federal estate tax will likely be repealed for one year starting on January 1, 2010, but will then reappear in 2011 under its previous 55% tax rate on anything above $1 million. Efforts to pass a SEMA-supported bill to permanently freeze the estate tax at its current 45% rate on amounts above $3.5 million/individual ($7 million/couple) failed in the U.S. Senate. The House passed the bill in mid-December.

Under President Bush’s tax cuts of 2001, the so-called “death tax” has been gradually reduced in advance of the 2010 repeal. However, during the last nine years lawmakers have been unable to agree on a permanent status for the tax. A stalemate emerged between lawmakers who wanted to abolish it altogether and those who wanted to retain it at modified rates. Among other stumbling blocks, lawmakers have been unable to identify other sources of revenue to replace income derived from the tax, about $25 billion for 2009.

SEMA and a number of other associations formed the “Permanent Estate Tax Relief Now Coalition” to urge Congress to resolve the issue. The Democrat leadership may seek to pass the House bill in early 2010 and apply it retroactively to January 1, but it is unclear whether that effort will be successful.

The forthcoming repeal will not benefit many smaller estates during 2010. Instead of an exemption and a fair market value stepped-up basis for the appreciated assets, the heirs will receive the assets with a carry-over basis at their original value. The capital gains tax on any sale of the assets could be substantial. For more information, contact Stuart Gosswein.

The federal estate tax will likely be repealed for one year starting on January 1, 2010, but will then reappear in 2011 under its previous 55% tax rate on anything above $1 million. Efforts to pass a SEMA-supported bill to permanently freeze the estate tax at its current 45% rate on amounts above $3.5 million/individual ($7 million/couple) failed in the U.S. Senate. The House passed the bill in mid-December.

Under President Bush’s tax cuts of 2001, the so-called “death tax” has been gradually reduced in advance of the 2010 repeal. However, during the last nine years lawmakers have been unable to agree on a permanent status for the tax. A stalemate emerged between lawmakers who wanted to abolish it altogether and those who wanted to retain it at modified rates. Among other stumbling blocks, lawmakers have been unable to identify other sources of revenue to replace income derived from the tax, about $25 billion for 2009.

SEMA and a number of other associations formed the “Permanent Estate Tax Relief Now Coalition” to urge Congress to resolve the issue. The Democrat leadership may seek to pass the House bill in early 2010 and apply it retroactively to January 1, but it is unclear whether that effort will be successful.

The forthcoming repeal will not benefit many smaller estates during 2010. Instead of an exemption and a fair market value stepped-up basis for the appreciated assets, the heirs will receive the assets with a carry-over basis at their original value. The capital gains tax on any sale of the assets could be substantial. For more information, contact Stuart Gosswein.

Car and truck drivers seek the vehicles that best suit their needs, including the need to be individual. While the automakers deliver an amazing variety of products to fit dozens of market niches, they cannot possibly create a unique vehicle for every unique customer. Accessories and performance products fill that void, allowing unlimited and complete personalization of any car or truck.

Here are the models chosen as the Most Accessory-Friendly Vehicles for 2010.   

Car and truck drivers seek the vehicles that best suit their needs, including the need to be individual. While the automakers deliver an amazing variety of products to fit dozens of market niches, they cannot possibly create a unique vehicle for every unique customer. Accessories and performance products fill that void, allowing unlimited and complete personalization of any car or truck.

Here are the models chosen as the Most Accessory-Friendly Vehicles for 2010.   

Car and truck drivers seek the vehicles that best suit their needs, including the need to be individual. While the automakers deliver an amazing variety of products to fit dozens of market niches, they cannot possibly create a unique vehicle for every unique customer. Accessories and performance products fill that void, allowing unlimited and complete personalization of any car or truck.

Here are the models chosen as the Most Accessory-Friendly Vehicles for 2010.   

Car and truck drivers seek the vehicles that best suit their needs, including the need to be individual. While the automakers deliver an amazing variety of products to fit dozens of market niches, they cannot possibly create a unique vehicle for every unique customer. Accessories and performance products fill that void, allowing unlimited and complete personalization of any car or truck.

Here are the models chosen as the Most Accessory-Friendly Vehicles for 2010.   

Car and truck drivers seek the vehicles that best suit their needs, including the need to be individual. While the automakers deliver an amazing variety of products to fit dozens of market niches, they cannot possibly create a unique vehicle for every unique customer. Accessories and performance products fill that void, allowing unlimited and complete personalization of any car or truck.

Here are the models chosen as the Most Accessory-Friendly Vehicles for 2010.