The American Car Rental Association (ACRA) provided updates this week on the next stimulus bill as well as local and state priorities around the country:

Congress left town for its August recess without coming to an agreement on a stimulus 4.0 bill. A primary point of division between the negotiators is whether to send federal funds to state and local governments. 

House Democrats have earmarked $1.0 trillion for state grants to replace sales and income tax revenue lost during the pandemic, while the White House has resisted “bailing out” states that didn’t have a “rainy day fund” in place to cover state budget shortfalls. Congress returns for a short session this week before adjourning until after the November elections. 

Signals from the White House and House Democrats are that the sides have reached an agreement on a short-term government spending bill to prevent the federal government from shutting down at the end of the fiscal year (9/30). But there appears to have been little progress over the August recess on a compromise 4.0 pandemic bill with the two sides trading jabs and posturing for voters rather than negotiating seriously. 

ACRA continues to press for the following policies in a 4.0 bill: 

• Restoring Liquidity – All provisions that would restore liquidity not just to the car rental industry but to many industries impacted by the pandemic. 

• Airport Issues – ACRA has joined with other airport concessionaire groups and representatives of airport operators to push for $3.5 billion in MAG relief and rent abatement as part of a 4.0 bill.

• Liability Protection – Negotiators have not engaged in serious talks on a pandemic liability reform bill to date – current talks are focused on funding issues. In late July, ACRA joined with over 500 other associations that supports the inclusion of liability provisions in a 4.0 bill sent to the president.

• Travel Tax Credit – The concept of a federal tax credit or travel voucher to boost travel in the future has not gained traction today on Capitol Hill. 

• Cleaning Tax Credit – Early in August, ACRA signed on to an association letter that supports a payroll tax credit that permits companies to deduct 50% of the costs of pandemic-related cleaning supplies and facility modifications. 

Other Updates and News

• Chicago Predatory Towing – ACRA presented testimony at a virtual hearing of the Chicago City Council’s Finance Committee in support of a proposal to regulate companies that engage in predatory towing in the city. 

• New York Prevailing Wage – Passed legislature and on governor’s desk. 

• Massachusetts – Repeal of industry sales tax exemption appears to have died for now.