Lawmakers propose tax relief for truck drivers

WASHINGTON – House lawmakers reintroduced bipartisan legislation this week aimed at lightening the financial load for current truck drivers and incentivizing new drivers to join the industry.

U.S. Reps. Pat Ryan, D-N.Y., and Zachary Nunn, R-Iowa, introduced on Wednesday the Strengthening Supply Chains through Truck Driver Incentives Act that provides a refundable tax credit for current drivers and an enhanced credit for new truck drivers and people in trucking apprenticeship programs.

On Thursday, a coalition of five congressmen led by Reps. Doug LaMalfa, R-Calif., and Chris Pappas, D-N.H., introduced the Modern, Clean, and Safe Trucks Act of 2025, which repeals the 12% federal excise tax (FET) on new truck and trailer purchases.

Both proposals have been introduced but died in previous sessions of Congress.

“Passing this bill is a no-brainer: better conditions for the workers that drive us forward, more high-paying union jobs, and lower costs for families across the country,” said Ryan upon introducing the tax incentive bill.

“We have to be encouraging more people to sign up to drive and stay there, which is why providing incentives like this is so important. Keeping more skilled drivers on the road will also help combat supply chain issues, which jack up prices for American consumers.”

Specifically, Ryan’s bill would:

• Create a refundable tax credit of up to $7,500 for tax years 2025 and 2026 for truck drivers holding a valid Class A CDL who drive at least 1,900 hours in the year.
• Create a refundable tax credit of up to $10,000 for tax years 2025 and 2026 for new truck drivers or those enrolled in a registered trucking apprenticeship.

It would also make new truck drivers eligible for the credit even if they did not drive a truck in the previous year, or if they drive at least 1,420 hours in the current year. Drivers could receive a proportion of the credit if they drive less than 1,420 hours within the year but at least an average of 40 hours a week upon starting to drive, according to the bill’s sponsors.

The American Trucking Associations – which supports both bills – pointed out that the FET, which started in 1917 to help finance World War I, is now the highest-percentage federal excise tax levied on any product and costs the trucking industry $6 billion per year.

“In many cases, this exorbitant additional expense simply puts new trucks out of reach, and small businesses with less access to capital are disproportionately harmed,” ATA stated in a press release.

“Keeping this tax on the books decreases orders for trucks and trailers, consequently reducing manufacturing jobs. It also delays the deployment of new trucks and trailers, which have greater environmental and safety benefits compared to older models still on the road.”

Related articles:

• 12% new-truck tax panned at highway funding hearing
• Owner-operators seek one-year suspension of heavy vehicle tax
• House panel debates ELD certification, truck weight limits

Click for more FreightWaves articles by John Gallagher.

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