Page 6 - NTDA TrailerTalk - December 2024

TRAILERTALK

NTDA Seeking PAC Donations to Support Change

to Internal Revenue Code Section 163(j)

The NTDA is seeking donations to its recently formed Political Action Committee
(PAC), the Commercial Semi-Trailer Advocacy PAC. The Associaiton is seeking an
amendment to Internal Revenue Code § 163(j) to redefine “self-propelled vehicles”
as “any self-propelled or titled trailer designed for transporting people or property
on public streets, highways, or roads, as well as boats or farm machinery and
equipment,” thereby including semi-trailers.” This critical change would grant semi-
trailer dealers the same tax benefits currently available to auto and truck dealers, PAC
promoting fairness, business growth, and economic stability.

The NTDA’s goal is raise $50,000 in initial PAC funding to support an amendment
to Internal Revenue Code § 163(j) to redefine “self-propelled vehicles” as “any self-propelled or titled trailer designed for transporting people or
property on public streets, highways, or roads, as well as boats or farm machinery and equipment,” thereby including semi-trailers.” This critical
change would grant trailer dealers the same tax benefits currently available to auto and truck dealers, promoting fairness, business growth, and
economic stability.

Additional PAC funding may be sought in the future to support additional initiatives such as repealing the Federal Excise tax. The NTDA has
received less than $6,000 to-date since launching the initiative.

You can find details on how to contribute to the PAC at https://ntda.site-ym.com/page/Advocacy. U.S.-based Dealer and Allied primary member
contacts were also sent information by mail. All Political Action Committee donations are greatly appreciated and must be written on a personal
check to: Commercial Semi-Trailer Advocacy PAC, 9864 E. Grand River Ave., Ste. 110-290, Brighton, MI 48116.

The PAC enables the NTDA to build and strengthen relationships with key lawmakers, opening doors to legislative and regulatory outcomes
that directly benefit you. Whether it's reducing regulatory burdens, enhancing tax incentives, or securing funding for industry-specific programs,
your support can drive meaningful change. Through campaign contributions, the PAC fosters goodwill and ensures policymakers understand
the challenges and priorities of the semi-trailer industry. Together, we can amplify our collective voice and shape a favorable environment for our
businesses to thrive. By participating in the PAC, you can help ensure the semi-trailer industry’s needs are heard and addressed. Right now, a critical
issue requires your attention and support.

Visit https://ntda.site-ym.com/page/Advocacy for links to the House and Senate directories. Simply key in your zip code to find your representative.
The NTDA is also happy to provide you with a list of the influential House Ways & Means and Senate Finance Committee members who can help
drive this change.

BACKGROUND:

The floor plan tax deduction allows semi-trailer dealerships to deduct the interest on loans used to purchase inventory, including semi-trailers. This
deduction is essential for businesses reliant on floor plan financing, helping them maintain adequate inventory and liquidity. However, the 2017 tax
reform reduced this benefit, limiting the deduction to a 30% cap on adjusted taxable income (ATI) and denying bonus depreciation for semi-trailer
dealerships using this provision.

These changes have disproportionately impacted semi-trailer dealers, especially during economic downturns. High market interest rates have inten-
sified the issue, limiting semi-trailer dealers’ ability to purchase inventory, disrupting manufacturing and supply chains, and threatening jobs across
the industry.

In 2018, the definition of motor vehicles was changed to include only “self-propelled vehicles,” excluding semi-trailers. This inequity leaves semi-trailer
dealers at a disadvantage compared to auto and truck dealers, despite their shared reliance on floor plan financing. Parity is essential to ensure fair
treatment across the industry.
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