Overview
Title
To amend the Internal Revenue Code of 1986 to establish a refundable tax credit for commercial truck drivers.
ELI5 AI
H.R. 2391 wants to give truck drivers a special money bonus when they do their jobs. New truck drivers get a bigger bonus to help more people become truck drivers.
Summary AI
H. R. 2391 seeks to create a refundable tax credit for commercial truck drivers by amending the Internal Revenue Code of 1986. Eligible drivers would receive a $7,500 tax credit if they meet specific criteria, like having a Class A commercial driver’s license and driving a set number of hours. New drivers and those in apprenticeship programs could receive different credit amounts, with the incentive tailored to encourage more people to enter the trucking industry. The bill is designed to help strengthen supply chains by offering financial incentives to truck drivers, and it includes adjustments for inflation and a termination date after 2026.
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AnalysisAI
General Summary of the Bill
The proposed legislation, titled the “Strengthening Supply Chains Through Truck Driver Incentives Act of 2025,” aims to amend the Internal Revenue Code of 1986. Its primary objective is to establish a refundable tax credit for commercial truck drivers. The bill introduces a tax credit system whereby eligible drivers can receive up to $7,500 annually. New drivers who did not drive in the previous year may qualify for an enhanced credit of $10,000. This initiative is geared toward incentivizing individuals to enter the trucking profession and addressing shortages within the industry. The tax credits are set to be implemented for taxable years after December 31, 2025, and are slated to expire after December 31, 2026.
Summary of Significant Issues
One of the most pressing issues with this bill is the termination date for the tax credits, which is set for the end of 2026. This brief period may not be long enough to significantly influence workforce participation in the commercial trucking industry. Another notable concern is the inequality in credit amounts between new and seasoned drivers; new entrants are eligible for a higher credit, which might create discontent among experienced truckers. Additionally, the complexity of the bill’s provisions, particularly the calculation of credits for those working less than 1420 hours, may lead to confusion and administrative challenges, hindering seamless implementation. The inflation adjustment beginning only after 2025 might also be seen as inadequate if living costs for truck drivers rise significantly before then.
Impact on the Public
The bill is designed to bolster the supply of commercial truck drivers, which is crucial for maintaining supply chains and, by extension, overall economic health. By providing financial incentives, the legislation seeks to attract more individuals to this vital profession. However, the bill's impact could be compromised by its limited duration and the complexity surrounding the eligibility criteria and credit calculations. If these issues are not addressed, the desired boost in workforce numbers may fall short of expectations, affecting the supply chain's robustness.
Impact on Specific Stakeholders
For existing truck drivers, the disparity in tax credits might seem unjust, as new drivers stand to receive a larger financial incentive. This could potentially erode morale and lead to dissatisfaction among seasoned professionals. Conversely, new entrants into the trucking industry could see considerable benefits, making the profession more attractive and increasing the likelihood of their joining the workforce. The temporary nature of the credits, however, might deter individuals who are cautious about the stability of these benefits.
For businesses reliant on trucking, the bill could alleviate some of the current challenges related to driver shortages. In the short term, this may result in more reliable logistics and distribution services. However, companies may remain concerned about the long-term viability of the incentives, given their current end date. Lastly, regulatory bodies such as the IRS might face an increase in administrative burdens due to the complex nature of the credit allocation process, highlighting the need for clear guidelines and better communication with taxpayers.
Financial Assessment
The proposed bill, H.R. 2391, seeks to amend the Internal Revenue Code of 1986 to establish a refundable tax credit specifically for commercial truck drivers. This tax credit aims to financially support truck drivers and potentially alleviate workforce shortages in the industry by offering $7,500 per taxable year to eligible individuals.
Financial Allocations
The bill establishes a refundable tax credit of $7,500 for commercial truck drivers who possess a valid Class A commercial driver's license and drive a qualifying vehicle for a specified number of hours per year. This initiative targets individuals who are actively engaged in the trucking industry. Furthermore, in an attempt to encourage new entrants into the field, the bill offers an enhanced credit of $10,000 for individuals who are new to the profession, as specified in subsection (d).
Related Issues
Equity Between New and Experienced Drivers: The financial distinction between new drivers, who receive a higher credit of $10,000, and more experienced drivers, eligible for $7,500, raises concerns about fairness and could potentially lead to dissatisfaction among seasoned truck drivers. The incentive structure may inadvertently favor new entrants over those who have long contributed to the industry.
Complexity of Credit Calculations: The provision for prorated credits for drivers working less than 1420 hours introduces complexity. This prorated approach, as explained in subsection (e), necessitates careful calculation, which may pose challenges in terms of administrative efficiency and could confuse taxpayers. Both the drivers who are trying to calculate their eligible credit and the IRS are likely to experience some degree of difficulty in navigating these calculations.
Inflation Adjustment Concerns: The bill includes an inflation adjustment clause, effective for taxable years beginning after 2025. However, the delayed implementation of this adjustment means that truck drivers might feel the impact of inflation in the interim period, potentially diminishing the real value of the $7,500 or $10,000 credit and defeating its purpose as a financial incentive.
Eligibility and Income Thresholds: The credit eligibility is determined by adjusted gross income thresholds: $135,000 for joint returns or surviving spouses, $112,500 for heads of households, and $90,000 for all other individuals. These thresholds might inadvertently favor individuals in higher income brackets, potentially diminishing the intended incentive effects for lower-income individuals who might benefit most from pursuing a career in trucking.
Overall, while the financial allocations in the bill are designed to provide solid monetary support to commercial truck drivers, several aspects related to how these funds are distributed and adjusted introduce challenges. Addressing these concerns could improve both the efficacy and the fairness of the proposed tax credits as a solution to industry workforce issues.
Issues
The termination date for the credit, set for December 31, 2026, in SEC. 36C subsection (g), may not provide sufficient time for new entrants into the commercial trucking industry to benefit from this incentive, potentially undermining the intended purpose of addressing workforce shortages in the industry.
The disparity in credit amounts between new truck drivers, who receive $10,000, and experienced drivers, who receive $7,500, as outlined in SEC. 36C subsections (a) and (d), may be seen as inequitable and could lead to tension among drivers, potentially favoring new entrants over seasoned professionals.
The complexity involved in calculating the credit for drivers working less than 1420 hours, as mentioned in SEC. 36C subsection (e), might cause confusion and administrative difficulty for both taxpayers and the IRS, impeding effective implementation of the tax credit.
The inflation adjustment clause, beginning only after 2025 as specified in SEC. 36C subsection (f), may prove inadequate in the face of high inflation rates affecting the cost of living for truck drivers before this date, reducing the real value of the credit.
Subsection (c) of SEC. 36C on apprentices allows training hours to count as driving hours for credit eligibility, which may create discrepancies in actual driving experience when compared to non-apprenticeship drivers, potentially impacting road safety and industry standards.
The eligibility criteria based on adjusted gross income in SEC. 36C subsection (b)(2) sets thresholds that could favor higher-income groups, potentially undermining the incentive for lower-income individuals to pursue careers as commercial truck drivers.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The act is officially named the “Strengthening Supply Chains Through Truck Driver Incentives Act of 2025”.
2. Credit for commercial truck drivers Read Opens in new tab
Summary AI
The proposed amendment to the Internal Revenue Code introduces a tax credit for commercial truck drivers. Eligible drivers, including apprentices and new drivers, can receive credits of up to $7,500 or $10,000 depending on their driving hours, income, and other criteria, with adjustments for inflation beginning after 2025, and this credit applies to taxable years ending on or after December 31, 2025, but not after December 31, 2026.
Money References
- “(a) Allowance of credit.—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle an amount equal to $7,500 for the taxable year.
- “(b) Eligible individual.—For the purposes of this section, the term ‘eligible taxpayer’ means, with respect to a taxable year, an individual— “(1) who holds a valid Class A commercial driver’s license (except as provided in subsection (c)) who operates a tractor-trailer combination that qualifies as a Group A vehicle under section 383.91(a)(1) of title 49, Code of Federal Regulations, “(2) whose adjusted gross income for the taxable year does not exceed— “(A) in the case of a joint return or surviving spouse, $135,000, “(B) in the case of an individual who is a head of household, $112,500, or “(C) in the case of any other individual, $90,000, and “(3) who drove such a vehicle in the course of a trade or business— “(A) not less than 1900 hours during such taxable year, or “(B) in the case of an individual who did not drive a commercial truck in the preceding taxable year, not less than an average of 40 hours per week with respect to weeks during the taxable year in which such individual drove such a vehicle in the course of a trade or business.
- “(d) Special rule for new truck drivers.—Except as provided in subsection (e), in the case of an eligible taxpayer who did not drive a commercial truck in the course of a trade or business during the preceding taxable year, subsection (a) shall be applied by substituting ‘$10,000’ for ‘$7,500’.
- “(e) Special rule for drivers with less than 1420 hours.—In the case of an eligible taxpayer who did not drive a commercial truck in the preceding taxable year who drives a commercial truck for less than 1420 hours in the course of a trade or business during the taxable year, the amount of the credit allowed by subsection (a) shall be the amount that bears the same proportion to the dollar amount (determined without regard to this subsection) with respect to the individual under subsection (a) as the number of hours such individual drove a commercial truck in the course of a trade or business during such taxable years bears to 1420 hours.
- “(f) Inflation adjustment.—In the case of any taxable year beginning after 2025, the dollar amounts in this section shall be increased by an amount equal to— “(1) such dollar amount, multiplied by “(2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2025’ for ‘calendar year 2016’ in subparagraph (A)(ii).
36C. Credit for commercial truck drivers Read Opens in new tab
Summary AI
In this section, a tax credit is offered to eligible commercial truck drivers, amounting to $7,500 annually, for those with a valid Class A commercial driver's license who drive a truck as part of their job. For new drivers, this credit can increase to $10,000, and there are provisions allowing apprenticeship training hours to count towards driving hours. The credit is adjusted for inflation for tax years beginning after 2025 and will not be available for tax years starting after 2026.
Money References
- (a) Allowance of credit.—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle an amount equal to $7,500 for the taxable year.
- (b) Eligible individual.—For the purposes of this section, the term “eligible taxpayer” means, with respect to a taxable year, an individual— (1) who holds a valid Class A commercial driver’s license (except as provided in subsection (c)) who operates a tractor-trailer combination that qualifies as a Group A vehicle under section 383.91(a)(1) of title 49, Code of Federal Regulations, (2) whose adjusted gross income for the taxable year does not exceed— (A) in the case of a joint return or surviving spouse, $135,000, (B) in the case of an individual who is a head of household, $112,500, or (C) in the case of any other individual, $90,000, and (3) who drove such a vehicle in the course of a trade or business— (A) not less than 1900 hours during such taxable year, or (B) in the case of an individual who did not drive a commercial truck in the preceding taxable year, not less than an average of 40 hours per week with respect to weeks during the taxable year in which such individual drove such a vehicle in the course of a trade or business.
- (d) Special rule for new truck drivers.—Except as provided in subsection (e), in the case of an eligible taxpayer who did not drive a commercial truck in the course of a trade or business during the preceding taxable year, subsection (a) shall be applied by substituting “$10,000” for “$7,500”.
- (e) Special rule for drivers with less than 1420 hours.—In the case of an eligible taxpayer who did not drive a commercial truck in the preceding taxable year who drives a commercial truck for less than 1420 hours in the course of a trade or business during the taxable year, the amount of the credit allowed by subsection (a) shall be the amount that bears the same proportion to the dollar amount (determined without regard to this subsection) with respect to the individual under subsection (a) as the number of hours such individual drove a commercial truck in the course of a trade or business during such taxable years bears to 1420 hours. (f) Inflation adjustment.—In the case of any taxable year beginning after 2025, the dollar amounts in this section shall be increased by an amount equal to— (1) such dollar amount, multiplied by (2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2025” for “calendar year 2016” in subparagraph (A)(ii).