The 2026 Legislative Session concluded just before midnight on Sunday, May 17. While the session was divisive and lacked coordination between the House and Senate, MADA was able to achieve our top two priorities: PFAS reporting reform and extending the Pass-Through Entity Tax (PTET).

The coalition of manufacturers and retailers pushing for PFAS reporting reform was able to pass language modifying manufacturer reporting to only include products manufactured after July 1, 2023. This is a major win for the automotive industry! There was concern about being unable to report on replacement parts for older vehicles, as oftentimes, the supply chain data on PFAS content for these parts doesn’t exist. This victory will prevent the potential lack of parts availability to service vehicles. The Alliance of Automotive Innovation was very clear that manufacturers would be able to report PFAS content on auto parts manufactured after July 1, 2023.

The tax bill also included the extension of the PTET through the end of 2027. While stakeholders tried desperately to make the PTET permanent, the House DFL would not budge. They were demanding a cut of business’ federal tax savings for the state in order to make that deal. Since the PTET costs the state absolutely nothing, negotiators would not agree to send more taxes from small businesses to the state. So, unfortunately, we’ll be back next session to push again for a permanent PTET.

Interestingly enough, you won’t read about MADA’s biggest victory in any news article, as it occurred completely behind the scenes. The final deal reached by legislative leaders and the Governor included a one-year reduction in vehicle registration taxes. MADA was notified that the House DFL was attempting to insert language requiring auto dealers to disclose a five-year projection of a vehicle’s tab fees at the time of sale. Clearly, this is something we would strongly oppose for many reasons: it implies that dealers have set the tab fee amount or receive those fees, calculating those fees is a big ask of dealership staff, and it would discourage the sale of a vehicle (to name just a few).

MADA immediately reached out to the Transportation committee chairs, lead negotiators, and legislative leadership letting them know our strong opposition. The House DFL notified MADA they would drop the provision for now but said “it needs to happen” and this will be an issue they will push next session. We will be prepared for that fight!

Now, MADA’s attention will turn to the 2026 elections, where every legislator and state-level elected official is on the November ballot.