Truck drivers continue to be in high-demand, and trucking companies have raised wages to encourage more drivers to join their ranks. This has been great news for new and existing drivers, and more good news may be on the way. In addition to rising wages, more financial benefit may be coming to drivers in the form of tax credits.
Originally introduced in April 2022, the bipartisan Strengthening Supply Chains Through Truck Driver Incentives Act has recently been reintroduced to Congress. This bill would provide a short-term tax incentive to truck drivers.
Representative Abigail Spanberger (D-Virginia) and Representative Mike Gallagher (R-Wisconsin) crafted the bill to make truck driving an attractive career and prevent future problems within the supply chain that could impact all Americans.
The bill would introduce three important tax credit opportunities:
1. Truck drivers with a valid Class A CDL that drive at least 1,900 hours in the year would be eligible for a tax credit up to $7,500. This would last for the tax years of 2023 and 2024.
2. New truck drivers or those enrolled in a registered trucking apprenticeship would be eligible for a tax credit up to $10,000. This would also last for 2023 and 2024.
3. New truck drivers may become eligible even if they did not drive in the previous year or if they drove at least 1,420 hours in the current year. If they drove less than 1,420 hours, they may receive a percentage of the total credit.
A similar bill called the Safer Highways and Increased Performance for Interstate Trucking (SHIP IT) Act was introduced earlier in the year. This bill would have also introduced tax credits for truck drivers, so there is decent bipartisan support which bolsters the bill’s chance of passage.
Statements from the Congresspeople
Rep. Gallagher says the bill is ““a common sense way to recruit and retain more drivers to keep our shelves stocked and our economy moving.”
Rep. Spanberger said the bill would “help bring more drivers into the fold, keep them on the highway, and reward them for their loyalty” for their essential work during the pandemic.
Support from the Stakeholders
The bill is endorsed by the following:
- American Trucking Associations
- American Loggers Council
- National Grocers Association
- International Foodservice Distributors Association
- American Building Materials Alliance
- Forest Resources Association
- Hardwood Federation
- Wood Machinery Manufacturers of America
- Third Way
- National Pork Producers Council
Earlier this year, Reps. Dusty Johnson (R-South Dakota) and Jim Costa (D-California) introduced the Safer Highways and Increased Performance for Interstate Trucking (SHIP IT) Act, a bill that, among other things, also called for a temporary $7,500 tax credit for eligible drivers.