Did you know that The Americas Trade and Investment Act may impact the resale industry in the size of billions in loans and grants for companies (like yours) that are supporting circularity?

The Americas Trade and Investment Act, also known as the Americas Act, was initially drafted last year to strengthen trade and manufacturing relationships between North America, Central America, South America and the Caribbean.

Last week, Senators Bill Cassidy and Michael Bennet and Representatives Maria Salazar and Adriano Espaillat officially announced the full bill, which includes subsidies and incentives for circular fashion companies. Per Glossy, the bill would lower taxes for businesses involved in recycling, reusing or reselling of apparel by 15% and offer billions of dollars in loans and grands for those companies to help improve the technologies that support circularity.

If the bill passes, it would be one of the most impactful legislations for the resale community. The tax incentives and funding could be to the tunes of billions of dollars.

What could this mean for your business? It could mean that the “tax incentives” could be beneficial to resellers like you. If the sales tax is removed on pre-owned purchases, since it was already paid for the first time when it was sold, that means the reseller could pass along some or all of the savings to the customers as well.

If the tax incentives are in the form of lowered corporate taxes, it may not be as impactful but still helpful.

The most impact the Americas Act could be is for sustainability. With more incentives for customers to buy and sell their pre-owned goods, this could contribute to even faster growth for the resale industry.

Stay tuned here for more updates on the Americas Act and what it could mean for your business.