New US bill, tax credits aims to retain and recruit truck drivers

In News3 MinutesBy NZ Trucking magazineJanuary 27, 2023

Truck drivers in the United States maybe eligible for up to $10,000 in tax credits, along with training incentives, as part of new bipartisan legislation aimed at retaining and recruiting drivers.

The Safer Highways and Increased Performance for Interstate Trucking (SHIP IT) Act, also incorporates truck parking funding and an hours-of-service exemption for livestock haulers — long-sought measures by drivers and carriers.

The lawmakers called the bill a “sweeping overhaul of the interstate trucking supply chain system.” U.S. Reps. Dusty Johnson sees it as an extension to last year’s Ocean Shipping Reform Act.

“Last year we addressed ocean shipping reform, and it’s clear that updates are needed for other parts of the supply chain. The SHIP IT Act will bridge gaps, keep costs down for consumers, and make it easier for shippers to move products across the U.S.,” Johnson said in introducing the bill.

“We need to recruit, train, and retain truck drivers to keep our supply chain moving, while also updating best practices to improve trucking to fit our modern economy,” Jim Costa, D-Calif, said. “That is why we introduced this bipartisan legislation to strengthen the workforce and make it easier to move products across the country.”

Drivers holding a Class A CDL would have to make adjusted gross income of not more than $90,000 or $135,000 per year, depending on their filing status, to be eligible for a $7500 tax credit, according to the 28-page bill. A driver would be required to have had at least 1900 hours of on-duty time, including driving time. New truck drivers who did not drive a truck during the preceding tax year would be eligible for $10,000 under the same rules.

Dedicated funding to expand truck parking — $755 million over the next four years — is incorporated into the bill and includes many of the eligibility requirements that were in Senate and House truck parking capacity bills introduced in the last Congress.

The legislation also would loosen hours-of-service restrictions on agriculture and livestock haulers, as well as make it easier for states to waive hours-of-service rules during emergencies.