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U.S. Auto Industry Seeks Tax Relief, Delay in Implementing USMCA

March 20, 2020, 1:33 PM

Trade groups representing the U.S. auto industry are urging top lawmakers to consider several forms of tax relief and to delay the USMCA trade agreements start date amid the coronavirus fallout.

  • Alliance for Automotive Innovation and Motor and Equipment Manufacturers Association asked lawmakers to consider:
    • Tax deduction or credit for companies that provide paid sick leave for workers over Covid-19
    • Delay or defer 2020 quarterly federal tax payments
    • Temporary employer payroll tax holiday
    • Expand and extend expensing for equipment and machinery
    • Delay the June 1st date of entry into force for the USMCA
  • “We are already seeing a steep drop in retail sales over the last ten days, as well as significant disruptions in production, including temporary closures of numerous manufacturing facilities, while dealers and service centers largely remain open,” leaders of the groups said in letter.

To contact the reporter on this story:
Ryan Beene in Washington at rbeene@bloomberg.net

To contact the editors responsible for this story:
Jon Morgan at jmorgan97@bloomberg.net

Vivek Shankar

© 2020 Bloomberg L.P. All rights reserved. Used with permission.