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Did the Truck Driver Tax Credit Pass?

Back on March 31st, 2023, representatives Mike Gallagher (R-Wisconsin) and Abigail Spanberger (D-Virginia) reintroduced legislation to establish a refundable income tax credit for qualified commercial drivers.

Truck Driver Reading About Tax Credit

First introduced in April 2022, the bipartisan Strengthening Supply Chains Through Truck Driver Incentives Act would provide short-term incentives to try and attract and retain, new drivers.

The lawmakers expect the bill to do three things:

  1. Create a new refundable tax credit of up to $7,500 for truck drivers holding a valid Class A CDL who drive at least 1,900 hours in the year. This tax credit would last for two years.

  2. Create a new refundable tax credit of up to $10,000 for new truck drivers or individuals enrolled in a registered trucking apprenticeship. This tax credit would also last for two years.

  3. Allow new truck drivers to be eligible for the credit if they did not drive a commercial truck in the previous year or drive for at least 1,420 hours in the current year. They may receive a proportion of the credit if they drive less than 1,420 hours in the year, but drove at least an average of 40 hours a week upon starting to drive.

The Gallagher-Spanberger legislation is endorsed by several associations including the American Trucking Association, 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, and National Pork Producers Council.

Also in 2023, 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. That bill puts a cap on eligibility linked to adjusted gross income for the taxable year not exceeding $135,000 for couples filing jointly; $112,500 as head of household; or $90,000 individually. New truck drivers who did not drive a truck during the preceding tax year would also be eligible for $10,000 under the same rules.

Since these bills were reintroduced in the house early in 2023, there have been no further updates. So at this time truck drivers will not be eligible for any new “truck driver tax credits”.

However, there are still plenty of tax credits and deductions truck drivers are eligible for. If you would like to learn more about these and make sure you’re paying as little as possible to the IRS, feel free to contact us.

We will continue to keep an eye on any developments when it comes to this legislation and update this article as necessary.

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