[Congressional Record Volume 170, Number 80 (Wednesday, May 8, 2024)]
[Senate]
[Page S3601]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2033. Mr. BROWN (for himself and Mr. Scott of South Carolina) 
submitted an amendment intended to be proposed to amendment SA 1911 
proposed by Ms. Cantwell (for herself, Mr. Cruz, Ms. Duckworth, and Mr. 
Moran) to the bill H.R. 3935, to amend title 49, United States Code, to 
reauthorize and improve the Federal Aviation Administration and other 
civil aviation programs, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. 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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