Industry news and updates for Michigan's franchised dealers.

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MADA Fast Facts

February 16, 2024

Vol. 26 | Issue 7

After much planning and discussion, it was announced during a special MADA Board of Directors' session that a leadership change would take place on March 1, 2024. Terry Burns will be stepping down from the position of MADA executive vice president and James Fackler will begin leading association activities. Please reach out to James with any questions you may have and welcome him into his new position!

James Fackler has been MADA's director of regulatory compliance for the past 18 months. Prior to his time with MADA he was director of the Office of Program Support for the Michigan Department of State (MDOS), which is responsible for the creation of branch office procedures. While there, he supported the development and implementation of several new branch programs, including new legislative initiatives. Additionally, James led MDOS’s Commercial Client Experience program, providing dedicated resources to business communities that interact with the state, including dealerships and repair facilities. James also worked for the MDOS Office of Government Affairs for 13 years. As the department’s legislative liaison, James worked with MADA to develop dealer licensing changes that positively affected the licensing process and also helped develop Michigan’s Autonomous Vehicle (AV) laws.

James resides in Haslett with his wife, and has two daughters and a son.

The MADA officers are excited for James to continue with MADA as our new executive vice president. He has valuable knowledge on interactions between the state and dealerships. And his experience with SOS business licensing, state regulatory and business compliance issues will continue to be a great asset to Michigan dealers.

James and MADA President Chris Graff have already begun traveling the state to meet dealers and discuss new opportunities to support members. Please reach out to James and the MADA staff any time you have questions or need assistance. We look forward to supporting you!

Also see: a thank you letter from Terry Burns to MADA members

Save the date for the MADA Spring Dealer Meeting on May 14.

This will be a great opportunity to meet James in person (if you have not already) and hear what the association is working on!

The IRS issued the first edition of e-News for clean vehicle industry, an email newsletter designed to provide EV tax credit updates and tips for using the Energy Credits Online portal. The IRS created the newsletter in response to feedback received from dealers and dealer associations during the NADA Show. The edition of the newsletter recently issued included important reminders and best practices for submitting Time of Sale Reports and for determining Used Vehicle Eligibility. The next edition will cover buyer versus dealer/seller responsibilities regarding MAGI. Dealers can sign up for IRS e-News subscriptions here. Simply select “e-News for businesses” and sign up for e-News for clean vehicle industry.

IMPORTANT UPDATES FROM THIS WEEK'S IRS e-NEWS

Read below or view online

Vehicle Returns: If for any reason a vehicle is returned, the time of sale report should be voided within 48 hours of when the initial time-of-sale report was submitted. Where the initial time-of-sale report is not voided in this timeframe, including in cases where the return was made after the 48-hour window, the seller must file a new time of sale report noting the return. The IRS will acknowledge the report notating the return. 

In the case of a new clean vehicle that is returned after it was placed in service by the buyer, the vehicle, once returned, is not eligible for a new clean vehicle tax credit to a subsequent buyer.

In the case a used clean vehicle that is returned after it was placed in service, the vehicle is not eligible for a credit upon a subsequent sale if the vehicle history report reflects the prior sale that was returned. However, if the vehicle history report does not reflect the prior sale and return, the vehicle remains eligible.

Vehicle Sale Cancellation: If a sale is cancelled before the buyer takes possession of the vehicle, the vehicle will still be eligible for a clean vehicle credit upon a subsequent qualifying sale to another buyer. Please be sure to void the time-of-sale report within 48 hours of when the report was submitted to allow the VIN to be submitted on a future time-of-sale report.  

Submitting Time of Sale Reports: Best practice is submitting the time of sale report just prior to the vehicle being placed in service to obtain confirmation the VIN is eligible and the report has been accepted by the IRS. Placed in service generally means when the buyer takes possession of the vehicle. Time of sale reports must be submitted through IRS Energy Credits Online within 3 days of when the vehicle is placed in service. Sellers should still submit time of sale reports even if the report is submitted outside the 3-day window. If the vehicle is not placed-in-service, please be sure to void the time-of-sale report within 48 hours of when the initial time-of-sale report was submitted.  

Reminder: 2023 IRS Clean Vehicle Credit Annual Time of Sale Reports were due February 15, 2024

A dealership is to file an annual report for each eligible new clean vehicle (30D) and each eligible used clean vehicle (25E) sold in Calendar year 2023. If you have not filed yet, please fax the completed reports to the IRS at 855-755-7437. For more information visit the IRS website at: https://www.irs.gov/credits-deductions/clean-vehicle-credit-seller-or-dealer-requirements

A few dealers still have not returned their obsolete 2023 tab inventory. These are now overdue and must be returned immediately.

Tabs should be returned to the CVR Warehouse using a trackable carrier method such as UPS or Fed EX. Please be sure to include a copy of your available inventory report to ensure you are credited for your return. If you have any questions or concerns regarding this process contact your CVR Account Executive or CVR Support at (800) 333-6995.

1. Log into CVR and run an Inventory Available report.
2. Verify the serial numbers for the tabs on the report.
3. Verify that your physical tab inventory matches the report.
4. Mark the tabs as "OBSOLETE". Do NOT mark the tabs as Returned
5. Include a copy of your Inventory Available report to ensure your return is recorded properly.

TO MARK THE TABS OBSOLETE:

• From the CVR menu, navigate to INVENTORY > INVENTORY LISTS.
• Locate the inventory set, click to select and check the AVAILABLE box.
• Click on the top line to highlight and select CHANGE STATUS. From the NEW STATUS drop down, select OBSOLETE, enter the serial range, and SAVE.

Return your tabs & available inventory report using UPS or FedEx to:

MADA

ATTN: CVR RETURNS

1500 KENDALE BLVD

EAST LANSING, MI 48823

Bollinger Motors Names LaFontaine as Its First Commercial Dealership

Bollinger Motors, Inc., an electric commercial vehicle manufacturer headquartered in Oak Park, Michigan, has named LaFontaine Automotive Group as its first authorized dealer, with two locations in Lansing and Farmington Hills.

The Bollinger B4 Chassis Cab is an all-new, all-electric class 4 commercial truck designed from the ground up with extensive fleet and upfitter input. Bollinger's unique chassis design protects the 800V battery and components to offer unparalleled safety in the commercial market. The company anticipates deliveries of the B4 chassis cab to begin in the second half of 2024. 

"We are thrilled to work with LaFontaine right here in Michigan where we designed, and will build, the B4," said Robert Bollinger, founder and CEO of Bollinger Motors...keep reading

Bank of America provides retail loan financing and the full range of commercial banking services to automobile dealers across the United States. These services include comprehensive inventory financing, commercial loans, depository services, and merchant and treasury management services. 

Serving Michigan dealerships for more than 75 years, Lewis & Knopf CPAs, P.C. offers accounting, assurance, and business consulting services.