Illinois lawmakers in February introduced legislation to eliminate the trade-in allowance cap that took effect in 2020, plus a bill that addresses the compensation manufacturers grant dealers for warranty repair work.

Senate Bill 58, filed Feb. 9 by Sen. Antonio Munoz (D-Chicago), would restore the full sales tax credit on traded-in vehicles. The bill passed out of the Senate Revenue Committee March 3 on an 11-0 vote. Dealers and others who back it are encouraged to contact their state senators to support SB 58, which could be heard for passage by the full Senate March 9-11. Senators in early January voted unanimously to pass them same argument, but then the 101st session of the General Assembly expired before the House could act on it.

The trade-in cap first emerged in the final days of the legislature’s 2019 session, as Illinois Gov. J.B. Pritzker and lawmakers sought funding for the governor’s $45 billion capital infrastructure plan. The CATA and other groups back an alternate path for raising state revenue: increasing the tax on private party vehicle sales.

House Bill 3940, introduced Feb. 22 by state Rep. Lawrence Walsh Jr. (D-Joliet), changes the manner in which dealers are reimbursed by manufacturers for labor work, mandating that it be no less than the amount the customer pays for the same services.

Under HB 3940, "Adequate and fair compensation requires the manufacturer to pay each dealer no less than the amount the retail customer pays for the same services with regard to rate and time. Any time guide previously agreed to by the manufacturer and the dealer for extended warranty repairs may be used in lieu of actual time expended. In the event that a time guide has not been agreed to for warranty repairs, or said time guide does not define time for an applicable warranty repair, the manufacturer’s time guide shall be used, multiplied by 1.5."

Mechanics Local 701, the union representing area technicians at dealerships, is joining the CATA in its support of the legislation.