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.
The U.S. Environmental Protection Agency (EPA) delayed until mid-2010 a
decision on whether to permit the ethanol content of gasoline to
increase to 15% (from 10%). The original deadline was December 2009.
The Internal Revenue Service (IRS) has set the standard
business-mileage deduction at $.50 a mile for 2010. The rate is below
the $.55 cents allowed during 2009, reflecting lower transportation
costs during the past year.
The U.S. Environmental Protection Agency (EPA) issued a finding that
carbon dioxide (CO2) and other greenhouse gas emissions endanger public
health and the environment.
The U.S. House of Representatives passed SEMA-supported legislation to
make permanent the 2009 estate tax rate of 45 percent and exemption
rate of $3.5 million/individual ($7 million couple). Under President
Bush’s tax cuts of 2001, the so-called “death tax” is being gradually
phased-out by 2010.
The province of Saskatchewan is postponing the adoption of a
raised-vehicle policy and will instead participate in the Canadian
Council of Motor Transport Administrators (CCMTA) Excessively Raised
Vehicle Working Group. The CCMTA convened the working group with a
mandate to develop a national best practice for the regulation of
raised vehicles.
The National Highway Traffic Safety Administration (NHTSA) issued a
proposed rule to increase the tire test pressure for temporary-use
spare tires (T-tires) from 52 pounds per square inch (psi) to 60 psi.
The proposed change responds to a petition from the Tire & Rim
Association (TRA).
NHTSA has again postponed the effective date for the revised lighting standard. The agency wants extra time to confirm that there were no substantive changes included when the agency published the reorganized and simplified FMVSS 108 in 2007.
Earlier this year, the American Recovery and Reinvestment Act of 2009
extended the net operating loss (NOL) carryback period from two to five
years for tax years beginning in or ending in 2008 for small businesses
with gross receipts of $15 million or less.
The U.S. House of Representatives passed its version of health care
reform legislation by a 220-215 vote. SEMA and dozens of other trade
associations comprising the Small Business Coalition for Affordable
Healthcare sent a letter (below) to House members in opposition to the
bill. The letter identified significant flaws in the legislation which
would place new burdens on businesses without adequately controlling
costs.