Tracking legal, legislative, and regulatory developments impacting the racing and performance industry.

PRI’s Washington, DC-based legal and advocacy teams work continuously to protect and support motorsports venues, sanctioning bodies, and businesses around the nation. We are tracking several initiatives this month, including a pro-business tax bill in the US Congress and multiple state legislatures introducing bills aimed at fighting ZEV (zero-emission vehicle) mandates and supporting consumer freedom.

Attend the SEMA & PRI Washington Rally

Don’t miss out on the opportunity to attend the SEMA & PRI Washington Rally, taking place in Washington, DC, on May 8–9, 2024. The Washington Rally provides an opportunity for SEMA and PRI member companies to come together and advocate on behalf of the specialty automotive aftermarket and motorsports parts industries with members of Congress.

By attending the Washington Rally, you will have the opportunity to meet with your members of Congress and their staff, discuss critical issues, and advocate for policies that will benefit our industry. Your participation will help ensure that our industry’s concerns are heard and that we can continue to innovate and grow.

Whether it’s protecting the right to repair and modify vehicles with advanced technology, combating vehicle technology mandates that limit consumer choice, or protecting motorized access to federal government lands, there are many issues facing SEMA and PRI members in the nation’s capital. With the 2024 presidential election heating up and the balance of power in both the House and Senate up for grabs, it’s more important than ever for SEMA and PRI members to come to Washington, DC, to advocate for the industry!

To register for the Washington Rally or for more information, please visit sema.org/washington-rally or contact Kayla Mitchell at kaylam@sema.org.

SEMA and PRI have a limited number of rooms available at the Royal Sonesta Washington, DC Capitol Hill for $409 per night plus tax. A link to book a room will be provided upon completing the registration form. Please encourage SEMA and PRI members to RSVP for the Rally and book their rooms ASAP!

2024 Washington Rally events:

Wednesday, May 8, 2024 

5:30 pm–7:00 pm: SEMA-PRI PAC Reception, Royal Sonesta Capitol Hill, Sapphire Room & Terrace – Penthouse level

*A PAC contribution is required to attend in the suggested amount of $250 per individual. If you have already contributed to the SEMA and PRI PAC in 2024, this event may be complimentary as a part of your PAC Membership Benefits. Please contact PAC Manager Alicia Steger at alicias@sema.org if you have any questions.

7:00 pm–9:00 pm: Washington Rally Congressional Dinner, Royal Sonesta Capitol Hill, Crown Ballroom – Penthouse level

Thursday, May 9, 2024

7:00 am–8:30 am: Breakfast and Welcome Briefing, Royal Sonesta Capitol Hill, Crown Ballroom – Penthouse level

9:00 am–12:00 pm: Meetings with Congressional Representatives, House and Senate Office Buildings

9:00 am–3:00 pm: Cars at the Capitol Event, Southwest side of the US Capitol on Maryland Avenue (across from the Botanical Garden)

12:00 pm–1:30 pm: Congressional Luncheon, Capitol Hill Club, Eisenhower Room

2:00 pm–5:00 pm: Meetings with Congressional Representatives, House and Senate Office Buildings

California Introduces Bill to Mandate Speed Limiters

California has introduced SEMA- and PRI-opposed legislation to require new vehicles to be equipped with speed governors starting in model year 2027. Speed governors, also known as intelligent speed limiters, use GPS technology to limit vehicle speed. If enacted into law, new vehicles would not be able to travel more than 10 mph above the speed limit.

“SEMA and PRI stand firm against the proposed California legislation mandating speed limiters on new vehicles,” said Christian Robinson, SEMA and PRI’s senior director of state government affairs and grassroots. “This one-dimensional approach fails to acknowledge the nuanced nature of driving and the diverse needs of motorists. Imposing rigid restrictions undermines the essence of individual responsibility embraced by automotive enthusiasts, and we advocate for solutions that balance safety with the enjoyment of driving experiences.”

Currently, devices that prevent vehicles from exceeding a certain speed are not required. Among other issues, this proposal makes broad assumptions about real-world circumstances. This one-size-fits-all approach fails to recognize the diversity of driving experiences and the individual responsibility that automotive enthusiasts take seriously.

Pro-Business Tax Bill Passes House Committee

The US House of Representatives passed H.R. 7024, the Tax Relief for American Families and Workers Act of 2024. The PRI- and SEMA-supported bill gathered strong bipartisan support, passing by a margin of 357-70. 

Sponsored by Rep. Jason Smith (MO-08), this bipartisan legislation allows for immediate expensing of research and development (R&D) and investments in equipment, reduces reporting for small businesses using subcontractors, increases the small business expensing cap by nearly 30%, and expands the Child Tax Credit. The legislation now awaits consideration in the US Senate’s Finance Committee. 

“PRI is proud to support the ‘Tax Relief for American Families and Workers Act of 2024,’” said Eric Snyder, PRI’s senior director of federal government affairs. “The tax incentives in the bill will provide a shot in the arm for small businesses, including motorsports parts manufacturers, retailers, and race tracks.” 

PRI members and manufacturing businesses can benefit from the following parts of this legislation: 

R&D expensing: Businesses of all sizes can immediately deduct the cost of their US-based R&D investments instead of over five years, encouraging American innovation and improving our competitive position versus China and the rest of the world. 

Interest deductibility: Continued flexibility for businesses forced to borrow at higher interest rates to meet their payroll obligations and expand their operations. 

One-hundred percent expensing: Restore full and immediate expensing for investments in machines, equipment, and vehicles. 

Expand small business expensing cap: Increase the amount of investment that a small business can immediately write off to $1.29 million, an increase above the $1 million cap enacted in 2017. 

Cut red tape for small businesses: Adjust the reporting threshold for businesses that use subcontract labor from $600 to $1,000 and index for inflation, the first update to the threshold since the 1950s. 

SEMA and PRI, together with more than 260 organizations, signed the National Association of Manufacturers’ letter to US House and Senate leadership in support of the Tax Relief for American Families and Workers Act of 2024. 

PRI will provide updates on the progress of this important legislation. For more information, contact Tiffany Cipoletti at tiffanyc@sema.org.

West Virginia, South Dakota Introduce Bills Supporting Internal Combustion Engines

West Virginia Delegate Gary Howell, chairman emeritus of SEMA’s State Automotive Enthusiast Leadership Caucus, introduced SEMA- and PRI-supported legislation that would prevent any state or local government unit from restricting the use or sale of motor vehicles based on the energy source used to power them, including internal combustion engines (ICE). 

In addition, South Dakota has introduced SEMA- and PRI-supported legislation that would prevent any county or city in the state from limiting access to ICE and related technology. The bill awaits consideration by the House Local Government Committee.

“As advocates for the motorsports industry and individual freedom, we applaud West Virginia and South Dakota for taking a stand in favor of consumer choice,” said Christian Robinson, PRI’s senior director of state government affairs and grassroots. “The legislation introduced reflects our commitment to preserving the rights of residents to choose the vehicle technology that aligns with their needs and preferences. This move sets a positive precedent, and we hope other states will follow suit in championing individual liberty and the diverse automotive landscape.”

West Virginia and South Dakota are the first states to introduce this legislation in the 2024 state legislative sessions but follow seven other states (Texas, Oklahoma, Kansas, Wisconsin, Michigan, Ohio, and North Carolina) that have previously passed similar legislation and resolutions. 

PRI believes West Virginia and South Dakota residents, not the government, should be allowed to choose the type of vehicle technology that best serves them and their families. 

For details, contact SAN@sema.org. 

Virginia Lawmakers Introduce Bill to Repeal Virginia’s ZEV Mandate

In Virginia, lawmakers introduced PRI-supported legislation to repeal the law tying the state to California’s motor-vehicle emissions standards. Under current law, new gas- and diesel-powered vehicle sales will be banned starting in 2035. The multiple bills now await consideration in the Virginia General Assembly. 

PRI does not believe that the government—Virginia’s or California’s—should be choosing winners and losers in the automotive market. Virginians should decide what vehicles are best for them and their families. 

“In the spirit of individual choice and free-market principles, PRI stands firmly against government interference in the automotive market,” said Christian Robinson, PRI’s senior director of state government affairs and grassroots. “Virginians deserve the autonomy to decide their preferred vehicles without the imposition of mandates. We believe in empowering consumers, not dictating winners and losers.”

PRI will provide updates on the progress of this important legislation. For more, contact Kiley Chapley at kileyc@sema.org.