PRI and SEMA have an immediate need for information from industry members on the impact on your business of federal tax incentives, many of which expire at the end of the year.  

• CLICK HERE or below to complete our short survey to help us advocate for your business.
   

Your feedback is crucial for PRI and SEMA to understand the tax provisions that are most important to your business.  

Why Now? 

Tax policy is the top issue on the congressional docket in June. The U.S. House of Representatives recently passed a comprehensive tax bill (details below on key tax provisions) and the U.S. Senate is now working to draft its own version of the legislation. To ensure Congress keeps the tax provisions on which the automotive-aftermarket and motorsports industries rely, SEMA and PRI need to be at the table advocating for your needs today.  

Key Tax Provisions Contained in U.S. House-Passed Legislation 

The House bill includes a broad array of provisions important to SEMA and PRI members and the broader business community, including: 

• Extension of 2017 Reduced Tax Rates for Individuals: The bill permanently extends the discounted tax rates for individuals and pass-through businesses that expire at the end of 2025. 
• 199A Deduction for Pass-Through Businesses: The bill increases the 199A small business deduction from 20% to 23% and makes it permanent. This provision helps pass-through businesses, whose owners pay taxes as individuals, compete with corporations, whose profits are taxed at 20%. If enacted into law, small businesses, including partnerships and S corporations, will be able to subtract 23% of their qualified business income from their taxes. 
• Business Expensing and Research and Development: Renews 100% immediate expensing for equipment and machinery, 100% immediate expensing for research and development (R&D) in the United States, increased deductions for interest expenses, and supports the expansion of new production factories and growing operations in America by allowing 100% expensing for new factories, improvements to existing factories and other production facilities. 

If you have questions, contact Eric Snyder, SEMA's senior director for federal government affairs, at erics@sema.org. 

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