In an effort to address the truck driver shortage, U.S. Reps. Abigail Spanberger (D-Virginia) and Mike Gallagher (R-Wisconsin) introduced bipartisan legislation that would establish a refundable income tax credit for qualified commercial truck drivers.
The Strengthening Supply Chains Through Truck Driver Incentives Act would provide a short-term and fast incentive to attract and retain new drivers. Specifically, the Spanberger-Gallagher bill would create a two-year (2022 and 2023) refundable tax credit of up to $7,500 for truck drivers holding a valid Class A commercial driver’s license who drive at least 1,900 hours in the year.
Additionally, it would establish 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.
New truck drivers would 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.
ATA president and CEO Chris Spear said the bill would attract more drivers into the field by providing substantial tax credits to reduce their federal tax liabilities.
