Third time’s the charm? How truckers can get up to $10,000 in refundable tax credit if bill passes.
U.S. Rep. Zach Nunn is hoping new incentives will help entice truck drivers into an industry that struggles with recruitment and retention.
The recently introduced Strengthening Supply Chains Through Truck Driver Incentives Act offers significant financial benefits for new CDL drivers, registered trucking apprentices, and current truck drivers.
“We are experiencing both a recruitment and a retention problem in the trucking industry. This is a simple fix to help get more drivers behind the wheel.”
This bill proposes a refundable tax credit of up to $10,000 for new drivers and apprentices, as well as up to $7,500 for current CDL holders who meet specific driving requirements.
The tax credit will be available for two years (2025 and 2026) and aims to boost recruitment and retention in the trucking industry.
If the bill passes Congress, what would it do? Let’s find out!
Who Qualifies for the Tax Credit?
1. New CDL Holders & Apprentices
- If you are new to the trucking industry or enrolled in a registered apprenticeship program, you may qualify for a refundable tax credit of up to $10,000.
- To receive the full credit, new drivers must log at least 1,420 hours of driving in a year.
- If a new driver drives fewer hours but maintains an average of 40 hours per week upon starting, they can receive a partial credit.
2. Current CDL Holders
- Existing truck drivers with a Class A CDL who drive at least 1,900 hours per year qualify for a $7,500 refundable tax credit.
- This incentive is designed to retain experienced drivers and improve supply chain stability.
How to Take Advantage of the Tax Credit
For New Drivers & Apprentices:
- Enroll in a Registered Apprenticeship Program: If you’re considering a trucking career, look for apprenticeship programs registered with the Department of Labor to ensure eligibility.
- Meet the Driving Hour Requirement: Aim to log at least 1,420 hours in a year to maximize your tax credit.
- Keep Track of Your Driving Hours: Maintain accurate records of your driving time to ensure compliance.
- File Your Taxes Correctly: Work with a tax professional to claim the full $10,000 credit.
For Employers & Fleet Owners:
- Promote the Tax Credit to Recruit Drivers: Use this financial incentive as a selling point when hiring new drivers.
- Encourage Apprenticeships: Partner with training schools to develop registered apprenticeship programs.
- Retain Experienced Drivers: Inform current employees about the $7,500 tax credit and provide support to help them qualify.
For CDL Schools:
- Market the Incentive to Prospective Students: Highlight the $10,000 tax credit as a way to reduce the financial burden of training.
- Partner with Trucking Companies: Establish relationships with fleets offering apprenticeship programs to ensure graduates qualify.
- Ensure Compliance with Registered Apprenticeship Standards: Make sure your programs meet the necessary criteria for students to benefit from this tax break.
Example Scenarios
1. New CDL Graduate in 2025
- John enrolls in a registered apprenticeship program and completes his training.
- He starts driving full-time, accumulating 1,500 hours in his first year.
- Because he meets the hour requirement, he qualifies for the full $10,000 tax credit when filing his 2025 taxes.
2. Experienced Driver Qualifying for the $7,500 Credit
- Sarah has been a CDL driver for five years and logs 2,000 hours annually.
- She files her 2025 taxes and receives a $7,500 refundable tax credit, reducing her tax liability.
3. Part-Time New Driver Receiving a Partial Credit
- Alex starts trucking in mid-2025 but only logs 1,000 hours by the end of the year.
- Since he meets the weekly driving average requirement, he qualifies for a partial tax credit.
With trucking at the heart of the U.S. supply chain, this bill presents a golden opportunity for both new entrants and veteran drivers to capitalize on financial benefits while strengthening the industry.
Be sure to plan accordingly, track your hours, and take full advantage of this limited-time incentive!
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