Potential $7,500 Tax Refund for Class A CDL Holders?
The reality of the driver shortage across the US has been highlighted over the past two years with Covid, lockdowns, and new supply chain challenges. The industry has seen trucking companies take drivers for granted the past several decades which has been a frustrating position for many seasoned drivers.
The good news? Lawmakers appear to be hearing the voice of commercial drivers and are proposing new legislation to make the profession more desirable. Virginia Democrat, Abigail Spanberger, has put together a bipartisan bill with Mike Gallagher, a Republican in Wisconsin. This bill will aim to give truck drivers the ability to claim a $7,500 refundable tax credit for simply holding a valid Class A CDL.
Gallagher brought up several of the challenges that the industry is currently facing:
- Median age of a truck driver is 51 which means the industry needs new blood as the older driver generation approaches retirement age.
- Trucking companies are struggling to hire drivers with the shortage in availability.
The goal around the legislation will be to make the skilled CDL driver profession more desirable and encourage those looking to make a new career out of it.
The refundable tax will also require that drivers hit at least 1,900 hours of driving time in the year that they are looking to apply the tax credit. It would also be applicable for 2022 and 2023 (two years). New truck drivers that might not hit the mileage requirement may still possibly receive a portion of the credit as well.
It is difficult to try and weigh the likelihood of the bill getting passed until it is officially presented to congress. It should help that the bill is bipartisan and should allow many to cross political lines to approve the legislation which would be a huge benefit to the trucking industry that is seeing several challenges in the coming years.