[Congressional Record Volume 168, Number 200 (Thursday, December 22, 2022)]
[Senate]
[Page S10102]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  SUPPLY CHAIN DISRUPTIONS RELIEF ACT

  Mr. SCHUMER. Mr. President, I ask unanimous consent that the 
Committee on Finance be discharged from further consideration of S. 
4105 and the Senate proceed to its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report the bill by title.
  The senior assistant legislative clerk read as follows:

       A bill (S. 4105) to treat certain liquidations of new motor 
     vehicle inventory as qualified liquidations of LIFO inventory 
     for purposes of the Internal Revenue Code of 1986.

  There being no objection, the committee was discharged, and the 
Senate proceeded to consider the bill.
  Mr. SCHUMER. I ask unanimous consent that the bill be considered read 
a third time and passed and the motion to reconsider be considered made 
and laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 4105) was ordered to be engrossed for a third reading, 
was read the third time, and passed as follows:

                                S. 4105

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Supply Chain Disruptions 
     Relief Act''.

     SEC. 2. TREATMENT OF CERTAIN LIQUIDATIONS OF NEW MOTOR 
                   VEHICLE INVENTORY AS QUALIFIED LIQUIDATIONS OF 
                   LIFO INVENTORY.

       (a) In General.--In the case of any dealer of new motor 
     vehicles which inventories new motor vehicles under the LIFO 
     method for any specified taxable year, the requirements of 
     paragraphs (1)(B) and (2) of section 473(c) of the Internal 
     Revenue Code of 1986 shall be treated as satisfied with 
     respect to such inventory for such taxable year.
       (b) Additional Relief.--
       (1) In general.--The Secretary shall, not later than the 
     date which is 90 days after the date of the enactment of this 
     Act, prescribe regulations or other guidance under which 
     dealers of new motor vehicles with a qualified liquidation 
     (determined after application of subsection (a)) of new motor 
     vehicles for any specified taxable year may elect--
       (A) to not recognize any income in the specified taxable 
     year which is solely attributable to such qualified 
     liquidation, and
       (B) to treat the replacement period with respect to such 
     liquidation as being the period beginning with the first 
     taxable year after such specified taxable year and ending 
     with the earlier of--
       (i) the first taxable year after such liquidation with 
     respect to which such dealer does not inventory new motor 
     vehicles under the LIFO method, or
       (ii) the last taxable year ending before January 1, 2026.
       (2) Failure to fully replace liquidated vehicles during 
     replacement period.--If, as of the close of the replacement 
     period, the taxpayer has failed to replace all liquidated 
     vehicles with respect to a qualified liquidation to which 
     paragraph (1) applies, the taxpayer shall increase gross 
     income for the last taxable year of the replacement period by 
     the sum of--
       (A) the aggregate amount of income that would have been 
     required to be recognized in the liquidation year had the 
     taxpayer elected to apply the provisions of section 473 of 
     the Internal Revenue Code of 1986 and not made the election 
     in paragraph (1), plus
       (B) interest thereon at the underpayment rate established 
     under section 6621 of such Code.
       (3) Elections.--
       (A) In general.--Except to the extent provided in 
     subparagraph (B), an election under paragraph (1) with 
     respect to any specified taxable year shall be made by the 
     due date (including extensions) for filing the taxpayer's 
     return of tax for such taxable year and in such manner as the 
     Secretary may prescribe. Once made, any such election shall 
     be irrevocable.
       (B) Certain elections treated as change in method of 
     accounting.--In the case of an election with respect to a 
     specified taxable year for which the return of tax has 
     already been filed before the date of the enactment of this 
     Act, any election under paragraph (1) for such specified 
     taxable year may be made on the return of tax for the first 
     taxable year ending after the date of the enactment of this 
     Act and shall be treated for purposes of section 481 of the 
     Internal Revenue Code of 1986 as a change in method of 
     accounting initiated by the taxpayer and made with the 
     consent of the Secretary.
       (c) Definitions.--For purposes of this section--
       (1) Specified taxable year.--The term ``specified taxable 
     year'' means any liquidation year ending after March 12, 
     2020, and before January 1, 2022.
       (2) New motor vehicle.--The term ``new motor vehicle'' 
     means a motor vehicle--
       (A) which is described in section 163(j)(9)(C)(i) of the 
     Internal Revenue Code of 1986, and
       (B) the original use of which has not commenced.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury or the Secretary's delegate.
       (4) Other terms.--Except as otherwise provided in this 
     section, terms used in this section which are also used in 
     section 473 of the Internal Revenue Code of 1986 shall have 
     the same meaning as when used in such section 473.

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