My name is Mike Ettleson, and I am the Chairman of your state association. I would like to update you on the changes that took affect in our industry starting January 1st.

$10,000 Trade-In Cap
As of January 1, 2020, the tax credit for a motor vehicle trade-in is now capped at $10,000. For example, a customer who trades in a vehicle valued at $20,000 against the purchase of a $36,000 vehicle previously received a tax credit for the entire value of the trade-in and pays tax on the $16,000 difference. However, as of January 1^st, the same customer would receive a tax credit for only $10,000 and pay tax on $26,000—a $625 increase.

The Illinois Department of Revenue has issued a Frequently Asked Questions Bulletin with additional information about how the $10,000 Trade-In Credit Cap will affect your business in 2020. The Department's FAQ Bulletin can be found here. 

Thank you to the many dealers who participated in IADA’s advocacy campaign and contacted their legislators and the Governor. IADA will reach out to you again during the Spring Session when we attempt to reverse the trade-in cap.

Documentary Service Fee Increases to $300
IADA-backed legislation to increase the “Doc Fee” to $300, started January 1^st, remained intact, despite concern that the Doc Fee increase would get rolled back. The Doc Fee increase will help to reimburse dealers for the ever-expanding list of State and federal mandates related to the sale of motor vehicles.