Automotive Supply Chain Resilience and Expansion Model Act
The Automotive Supply Chain Resilience and Expansion Act supports auto manufacturers and suppliers facing tariff-driven disruptions by providing targeted relief, incentives for reshoring and diversification, and expanded export assistance. The legislation helps companies manage rising input costs, invest in more resilient supply chains, and access new global markets. Its goal is to protect jobs, stabilize production, and maintain the long-term competitiveness of the automotive sector amid shifting trade conditions.
Key Provisions
Automotive Tariff Relief Fund: Establishes a grant program to assist auto manufacturers and suppliers in mitigating the increased costs or revenue losses resulting from federal tariffs on imported parts and materials.
Supply Chain Relocation and Expansion Incentives: Provides tax credits and low-interest financing to automotive companies that invest in reshoring or diversifying supply chains.
Export Market Diversification Program: Expands state assistance for automotive exporters seeking to enter new markets to offset losses from retaliatory foreign tariffs.
Procurement Adaptation for Tariff-Impacted Suppliers: Authorizes state agencies to consider tariff impacts in procurement decisions involving domestic auto suppliers.
Automotive Resilience Task Force: Creates a task force to monitor global trade trends, assess impacts on the auto industry, and recommend policy responses.
Model Language
Section 1. Short Title. This Act shall be known and may be cited as the “Automotive Supply Chain Resilience and Expansion Act.”
Section 2. Purpose. The purpose of this Act is to provide strategic support to the automotive manufacturing sector in response to disruptions caused by federal tariffs and global trade instability.
Section 3. Definitions.
(a) “Eligible entity” means any automotive manufacturer or supplier operating in the state.
(b) “Tariff-related disruption” means increased costs, reduced revenues, or supply interruptions resulting directly or indirectly from federal tariffs or foreign retaliatory measures.
(c) “Department” means the state agency responsible for commerce or economic development.
Section 4. Automotive Tariff Relief Fund.
(a) There is hereby established the Automotive Tariff Relief Fund, administered by the Department.
(b) The Fund shall issue grants to eligible entities that demonstrate hardship due to tariff-related disruptions.
(c) Grants may be used for cost mitigation, inventory diversification, workforce retention, or capital investment.
(d) The Department shall establish rules for application procedures and documentation requirements.
Section 5. Supply Chain Relocation and Expansion Incentives.
(a) The Department shall provide refundable tax credits and low-interest loans to eligible entities that:
(1) Relocate critical supply operations;
(2) Expand domestic sourcing within the state; or
(3) Invest in technology or equipment that mitigates reliance on tariff-affected imports.
(b) The amount of any credit shall not exceed 30% of qualifying investment expenditures.
Section 6. Export Market Diversification Program.
(a) The Department shall expand export support services to eligible entities seeking new international markets.
(b) Services may include export financing assistance, trade mission subsidies, foreign regulatory compliance, and market entry consulting.
(c) Priority shall be given to businesses impacted by foreign retaliatory tariffs.
Section 7. Procurement Adaptation for Tariff-Impacted Suppliers.
(a) State procurement agencies may:
(1) Adjust bid scoring to reflect cost increases from tariffs;
(2) Grant temporary preference to domestic suppliers impacted by trade measures;
(3) Modify contract requirements to allow use of alternative materials.
(b) The Department of Finance shall issue implementing guidelines within 90 days.
Section 8. Automotive Resilience Task Force.
(a) There is hereby created the Automotive Resilience Task Force.
(b) The Task Force shall:
(1) Monitor federal trade actions and foreign retaliatory measures;
(2) Assess economic impact on the automotive sector;
(3) Recommend policy responses and industry adaptations.
(c) The Task Force shall consist of members appointed by the Governor or appropriate executive authority, including representatives from industry, labor, academia, and government.
(d) The Task Force shall submit a biennial report to the Legislature.
Section 9. Severability. If any provision of this Act is held invalid, such invalidity shall not affect other provisions which can be given effect without the invalid provision.
Section 10. Effective Date. This Act shall take effect on July 1 of the year following its enactment.