Taxes – Key ACRA Focus for Remainder of 2022
There are two federal tax issues at the forefront of ACRA’s federal advocacy efforts for the rest of 2022 – and they will be a primary focus of ACRA’s scheduled 2022 Legislative Conference in Washington, D.C. from September 21 – 23, 2022:
- Sunset of Full Expensing for Personal Property – When the 2017 federal tax reform act was enacted, there was good news and bad news in there on the tax front for ACRA members. Congress repealed the “like kind exchange” allowance for personal property – the “bad” news. However, Congress offset this repeal by extending the “full expensing” or “bonus depreciation” for personal property through 2022 – the “good” news. However, the further “bad” news is that the full expensing provision begins to sunset by 20% each calendar year – starting in 2023! ACRA is working with other stakeholders to extend the full expensing – or eliminate the sunset. (Full Expensing Article)
- Commercial Electric Vehicle Tax Credit – The “Build Back Better” (BBB) “social” infrastructure bill that cratered in Congress as a whole package late in 2021 will be reconsidered in pieces in 2022. Part of BBB would have established a commercial vehicle tax credit of 30% of the purchase price through 2031. ACRA has joined with a coalition of fleet stakeholders, including light duty vehicles, medium- and heavy-duty trucks, and buses to push Congress to split this commercial EV tax credit provision off from BBB and pass it as part of a broad federal tax package before the end of 2022. (Buyer Commerce EV Bill)
More on Electric Vehicles
ACRA submitted a letter (ACRA E&C Letter) to the House Energy and Commerce Committee’s Subcommittee on Energy as part of the subcommittee’s hearing on the electric vehicle infrastructure funding including in the 2021 federal infrastructure law. ACRA’s letter reiterated the EV expansion principles adopted by the ACRA Board in 2021 and added a request that the Departments of Energy and Transportation focus on EV charging infrastructure at airports and train stations due to the large number of rental vehicles that will be charged at these locations.
Also, ACRA President Sharky Laguana wrote to senior officials at the U.S. Departments of Energy and Transportation seeking to have ACRA or a car rental company named to the new DOE/DOT EV Working Group created by the 2021 infrastructure law. (ACRA DOT/DOE Letter)
Focus on EVs at ICRS
ACRA’s plenary session at the International Car Rental Show in Las Vegas later this month will focus on how federal, state and local policymakers are implementing the EV charging infrastructure program from the 2021 infrastructure bill, as well as their assumptions for EV integration into the light- and heavy-duty vehicle fleets. If all goes as planned, ACRA’s presentation, moderated by ACRA President Sharky Laguana, will feature speakers from the Federal Highway Administration, the State of Nevada Department of Transportation, and the Clark County, Nevada Transportation Administration, which oversees Reid/McCarren Airport as well as the City of Las Vegas. Their insights should provide substantial insight for all car rental operators on how public officials are approaching EV integration into the fleet.
The ACRAPAC Committee is planning an “encore” performance at the International Car Rental Show in Vegas on Monday, April 25, 2022 by ACRA President Sharky Laguana during an ACRAPAC “2022 Contributors Only” Reception from 5:30 – 7:30 p.m. The ACRAPAC reception (which will feature the only “adult spirits” at the Monday evening trade show, will be in the center of the trade show floor in the Paris Ballroom. But, please remember, you can only attend if you are 2022 contributor to ACRAPAC. For more information on the reception and ACRAPAC, please contact Sharon Faulkner (Acraorgsfaulkner@gmail.com) or Greg Scott (firstname.lastname@example.org).
State Legislative Activity Highlights
- Hawaii: Discussions continue on tax issues regarding imposing property taxes on all cars – ACRA has appropriately collected industry data to submit in order to continue its opposition to this proposal;
- South Carolina: ACRA continues to work with the DMV regarding a recent legal opinion that suggests the rental industry collect/remit a fee that the industry was never intended to collect/remit.
- Kansas: House Bill 7276 removes sales tax exemptions for rental car companies when purchasing vehicles for rent. ACRA is cautiously optimistic that it will not pass.
- Colorado: House Bill 1253 requires the making readily available equipment for disabled individuals by rental car companies. The bill has passed the House and will soon be debated in the Senate.
- New York: Assembly Bill 9343 and Senate Bill 8530 specifically permit rental car companies to separately recover costs relating to registering and plating rental vehicles.
- New Mexico: House Bill 68 passed the legislature. The bill contains increased penalties for catalytic converter thefts.
- Illinois: The industry will likely propose additional changes to the towing legislation in the City of Chicago.
ACRA Membership Activity
New ACRA Regular Operator Members:
- 5 Stars Pro LLC, Boca Raton, FL
- American Auto Brokers, San Antonio, TX
- Americars Auto Rental, Miami, FL
- Avanti Rentals, Charlestown, MA
- Grand Slam Exotics, Hapeville, GA
- Green Motion Canada, Ontario
- LA Auto Spot, Hawthorne, CA
- Legends Car & Van Rentals, Inglewood, CA
- Nashville Van Rentals, Nashville, TN
- Pure Integrity Group LLC, Kula HI
- Route 66 Rent A Car, Monrovia, CA
- VICFI Rent Cars Corp., Doral, FL
New ACRA Associate Member:
Regular ACRA Regular Operator Member Renewals:
- AAA Rent A Car d/b/a State Van Rental
- Famous Rent-A-Car
- Montgomery Aviation/Avis Budget Licensee AL
- Rugged Rentals
- SAVVA Rent
- Thrifty Car Rental – STL
- Zoom Car Rental
ACRA Associate Membership Renewals:
- ALLY Auto Remarketing
- Aspire Software
- Damage ID
- GMI Insurance
- Leslie Saunders Insurance
- NS Car Wash
- Rate Highway, Inc.
The 2022 International Car Rental Show will be held April 24 – 26, 2022 at the Paris Las Vegas Hotel and Casino in Las Vegas, Nevada. Mark your calendars! Registration is now open at www.internationalcarrentalshow.com/register/welcome-to-registration. And remember, ACRA members receive discounted registration rates for the ICRS – so if you are not yet a member of ACRA, go to www.acraorg.com today and join the only organization that represents the entire American car rental industry – large and small companies, operators and suppliers!
ACRA’s Board of Directors has scheduled ACRA’s 2022 D.C. Legislative Conference for September 19 – 21, 2022. To register for the conference, please go to www.acraorg.com. The conference’s schedule and details will be firmed up later in 2022 as we see what, if any, surprises the COVID pandemic has in store for us and whether Capitol Hill re-opens to in-person meetings. But sign up early to be sure of reserving your place for this popular and successful ACRA D.C. meeting.
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