A new bill introduced recently in the U.S. House of Representatives would, if passed and signed into law, establish a $7,500 tax credit over the next two years for certain Class A commercial driver’s license holders.
The bipartisan legislation, introduced by Reps. Mike Gallagher (R-Wisconsin) and Abigail Spanberger (D-Virginia), is dubbed the Strengthening Supply Chains Through Truck Driver Incentives Act.
The bill would create a two-year 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. It would also create a two-year refundable tax credit of up to $10,000 for new truck drivers or individuals enrolled in a registered trucking apprenticeship.
New truck drivers who did not drive a commercial truck in the previous year or drove for fewer than 1,420 hours in the current year may receive a proportion of the credit if they drove at least an average of 40 hours a week upon starting to drive.
To be eligible for the credit, the adjusted gross income of eligible drivers cannot exceed $90,000 ($135,000 in the case of a joint tax return and $112,500 for heads of household).
“Our legislation takes a commonsense step towards addressing our chronic driver shortage,” Spanberger believed. “By creating a refundable tax credit for the men and women who keep our goods flowing, we would encourage more young people to hop in the driver’s seat, reduce headaches for trucking businesses, and make sure experienced drivers are rewarded for their hard work.”
The American Trucking Associations endorsed the legislation, and ATA President and CEO Chris Spear said it “would attract even more drivers into the field by providing substantial tax credits to reduce their federal tax liabilities.
The legislation faces an uphill battle to become law, as it will have to be passed by the full U.S. House and then the Senate before landing on President Joe Biden’s desk for a signature.