Proposed Tax Relief for Truck Drivers: What It Means for the Industry

In an effort to support truck drivers and strengthen the supply chain, U.S. lawmakers have reintroduced bipartisan legislation aimed at reducing financial burdens for drivers while encouraging more people to join the trucking industry. The proposed tax incentives focus on both current and new drivers, while a separate bill seeks to eliminate an outdated tax on truck purchases, making it more affordable for trucking businesses to upgrade their fleets.

Truck Driver Tax Credit Proposal

The Strengthening Supply Chains through Truck Driver Incentives Act, introduced by Reps. Pat Ryan (D-N.Y.) and Zachary Nunn (R-Iowa), aims to provide direct financial relief to truck drivers by offering refundable tax credits. The bill proposes:

• A $7,500 tax credit for experienced truck drivers who hold a valid Class A Commercial Driver’s License (CDL) and drive at least 1,900 hours per year in 2025 and 2026.
• A $10,000 tax credit for new truck drivers or individuals enrolled in a registered trucking apprenticeship program.
• Proportional tax credits for new drivers who work at least 1,420 hours per year or an average of 40 hours per week upon entering the industry.

This legislation is designed to address two major challenges facing the trucking industry: retaining experienced drivers and attracting new talent. The high cost of obtaining a CDL, coupled with long hours and demanding conditions, has contributed to driver shortages, which in turn impact supply chains and increase consumer costs.

Eliminating the Federal Excise Tax on Trucks

In addition to the tax credit for drivers, a separate bill—The Modern, Clean, and Safe Trucks Act of 2025—aims to repeal the 12% federal excise tax (FET) on new truck and trailer purchases. The bill, introduced by a coalition of five congressmen led by Reps. Doug LaMalfa (R-Calif.) and Chris Pappas (D-N.H.), targets an outdated tax that has been in place since 1917.

Why Repealing the FET Matters

The federal excise tax on trucks is currently the highest-percentage excise tax imposed on any product in the U.S. and costs the trucking industry nearly $6 billion per year. Its repeal would:

• Make newer, safer, and more fuel-efficient trucks more affordable for fleets and owner-operators.
• Encourage small businesses and independent truckers to invest in modern vehicles.
• Boost truck and trailer manufacturing, creating more jobs in the industry.
• Reduce emissions by accelerating the replacement of older, less-efficient trucks with cleaner and more advanced models.

The American Trucking Associations (ATA), which supports both pieces of legislation, argues that the FET discourages investment in new trucks and puts small carriers at a disadvantage. Without this tax, trucking companies would have a greater ability to upgrade their fleets, improving road safety and environmental impact.

How This Could Impact the Trucking Industry

If passed, these tax relief measures could provide significant financial benefits to both truck drivers and trucking businesses. Some potential impacts include:

• Increased Driver Retention: More experienced truck drivers may stay in the industry due to direct financial incentives.
• More New Drivers Entering the Workforce: The $10,000 credit for new drivers could make trucking a more attractive career option.
• Lower Operating Costs for Trucking Companies: Removing the FET would help businesses save money when purchasing new vehicles.
• A More Efficient and Sustainable Supply Chain: Encouraging new drivers and modernizing truck fleets could lead to improved logistics, fewer delays, and reduced environmental impact.

Final Thoughts

These legislative efforts highlight the critical role that truck drivers play in keeping the U.S. economy moving. By providing financial incentives and reducing the cost of upgrading fleets, lawmakers hope to address driver shortages, improve working conditions, and strengthen the overall supply chain.

As discussions continue, trucking professionals and industry advocates will be closely watching to see if these proposals gain traction in Congress. If passed, they could mark a significant step toward creating a more sustainable and financially viable future for the trucking industry.