Category Archives: SEMA

1099 Fiasco

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In his 2011 State of the Union Address, President Obama called for repeal of the 1099 reporting requirement included in last year’s health care legislation. SEMA has steadfastly opposed the burdensome rule that will require businesses to issue 1099 reporting forms to all vendors from whom they buy more than $600 of goods or services in any year, beginning in 2012. Last year, SEMA joined with a number of other business groups in an effort to repeal the measure. However, lawmakers were unable to agree on how to fund the lost revenues.

SEMA President Chris Kersting said, “SEMA is pleased that President Obama has responded to one of many critical issues facing small businesses by supporting the repeal of the 1099 reporting requirement. By acknowledging the need to remove this unnecessary burden on small businesses, the President has cleared the way for swift legislative action. SEMA urges Congress to act on the President’s request without delay.”

The “Small Business Paperwork Mandate Elimination Act” has been introduced in the new Congress to remove the burdensome rule. Many members of Congress have signed on as co-sponsors. SEMA will once again work toward its enactment. For more information, please contact Dan Sadowski, Congressional Affairs Manager at dans@sema.org.

Collector Car Appreciation Day

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SEMA and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) councils announced July 8, 2011, as “Collector Car Appreciation Day.” The date marks the second commemoration in what will become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society. SEMA and its councils are now working to secure a congressional resolution to recognize the day’s significance.

“Last year, the United States Senate helped launch the first national Collector Car Appreciation Day by passing Senate Resolution 513 at our request,” said SEMA Vice President of Government Affairs Steve McDonald. “As a result, thousands of Americans gathered at car cruises, parades and other events to celebrate our nation’s automotive heritage. As we move forward, SEMA’s commitment to preserving and promoting the automotive restoration industry through its projects and programs is evident in this special day.”

S. Res. 513 was sponsored by Congressional Automotive Performance and Motorsports Caucus members Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC). Senators Tester and Burr have been strong advocates for the automotive hobby in Washington, and the resolution reaffirmed their understanding of the cultural importance of collector cars. The caucus is an informal, non-partisan group that pays tribute to America’s ever-growing love affair with the car and motorsports. The caucus recognizes the integral role collector cars have played in fostering our nation’s appreciation for the automobile’s unique place in our history.

“On July 8, 2011, collectors and enthusiasts will host hundreds of events across the country,” said Laura Bergan, ARMO chairman. “We will proudly partner with individuals, car clubs and businesses as they organize car cruises, club gatherings and other educational events to celebrate the day.”

Rick Love, HRIA chairman-elect said, “The industry endeavors to preserve our nation’s automotive heritage while providing well-paying, high-skilled jobs nationwide. Collector Car Appreciation Day is a singular tribute to this industry and the millions of hobbyists it supports.”

SEMA will maintain a list of scheduled events to commemorate America’s time-tested love affair with the automobile. Individuals, car clubs and business owners interested in publicizing events should contact Mike Dingell, director, SEMA Action Network (SAN) at 202/783-6007 ext. 38 or miked@sema.org. If you are unable to celebrate on July 8, SEMA encourages events to be scheduled throughout the month of July.

NEW LAW SUPPORTS LENDING, TAX BREAKS FOR SEMA MEMBER COMPANIES

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FOR IMMEDIATE RELEASE
Media Contact:
Della Domingo, dellad@sema.org
SEMA 909/396-0289, ext. 6723

NEW LAW SUPPORTS LENDING, TAX BREAKS FOR SEMA MEMBER COMPANIES
Small Businesses Seen as Engine for Economic Recovery

WASHINGTON, D.C. (September 27, 2010) –SEMA, the Specialty Equipment Market Association, applauded the signing into law of the “Small Business Jobs and Credit Act” (H.R. 5297), including $12 billion in tax incentives for small businesses and creating a $30 billion resource to activate greater lending to small businesses by community banks.

“For months, our member companies and small businesses across the country have struggled to gain access to capital and credit,” said Chris Kersting, SEMA’s President and CEO. “In many cases, tougher credit access has nothing to do with the SEMA member’s business and everything to do with the bank’s difficulties in meeting current lending to capital ratio requirements. Under this new law, funding for loans will be infused into community banks nationwide that are positioned to lend, helping small businesses to become an engine for economic growth and recovery.”

The law includes an extension of the bonus depreciation program, which allows businesses to write-off 50% of the cost of newly purchased depreciable property. Limited depreciation was permitted in 2008 and 2009. The law also expands and extends the Section 179 program, allowing companies to write-off up to $500,000 in capital expenditures in tax years 2010 and 2011, double the current limit for 2010.

“While SEMA appreciates the enactment of this legislation, we now urge bank regulators to quickly implement the lending program,” said Kersting. “It is time to get basic working credit available and help small businesses to become an engine of economic recovery.”

About SEMA

SEMA, the Specialty Equipment Market Association founded in 1963, represents the $31.85 billion specialty automotive industry of 6,461 member-companies. It is the authoritative source for research, data, trends and market growth information for the specialty auto parts industry. The industry provides appearance, performance, comfort, convenience and technology products for passenger and recreational vehicles. For more information, contact SEMA at 1575 S. Valley Vista Dr., Diamond Bar, CA 91765, tel: 909/396-0289, or visit www.sema.org or www.enjoythedrive.com