Strengthening Supply Chains Through Truck Driver Incentives

Federal

Strengthening Supply Chains Through Truck Driver Incentives Act of 2023

Source: Congress.gov · 1,056 words in original text

What This Bill Does

This bill creates a tax credit (money the government gives back to you on your taxes) for commercial truck drivers. The bill changes the tax code to allow eligible truck drivers to reduce the taxes they owe by a certain amount each year.

Who It Affects

Commercial truck drivers who hold a Class A commercial driver's license and operate tractor-trailer combinations. Apprentices enrolled in registered truck driver apprenticeship programs. Individuals with adjusted gross income (your total income before deductions) below certain limits.

Key Provisions

• Eligible truck drivers receive a $7,500 tax credit for each taxable year (Sec. 2, subsection (a)) • To qualify, drivers must hold a valid Class A commercial driver's license and operate a tractor-trailer combination vehicle that meets federal standards, and must have driven such a vehicle at least 1,900 hours during the taxable year, or an average of 40 hours per week during weeks they drove commercially if they did not drive a commercial truck in the previous year (Sec. 2, subsection (b)) • New truck drivers who did not drive commercial trucks in the previous year receive a $10,000 credit instead of $7,500 (Sec. 2, subsection (d)) • Income limits apply: $135,000 for joint returns or surviving spouses, $112,500 for heads of household, and $90,000 for all other individuals (Sec. 2, subsection (b)) • Apprentices enrolled in registered apprenticeship programs can count training hours as driving hours and do not need to hold a Class A license yet (Sec. 2, subsection (c)) • The credit amounts will increase each year after 2023 based on cost-of-living adjustments (Sec. 2, subsection (f))

What Changes

If this becomes law, commercial truck drivers meeting the requirements will receive a refundable tax credit (money returned to them) on their federal income taxes. New drivers entering the profession will receive a higher initial credit of $10,000. The credit amounts will automatically adjust upward for inflation in future years.

Important Definitions

The bill does not provide explicit plain English definitions of terms. However, it references "Class A commercial driver's license" (a professional license for operating large trucks), "tractor-trailer combination" (a large truck with attached cargo container), "adjusted gross income" (total income before deductions), and "apprenticeship program registered under the Act of August 16, 1937" (a formal training program).

Effective Date

The amendments apply to taxable years ending on or after December 31, 2023. The credit expires and does not apply to any taxable year beginning after December 31, 2024.

I 118TH CONGRESS 1ST SESSION H. R. 2450 To amend the Internal Revenue Code of 1986 to establish a refundable tax credit for commercial truck drivers. IN THE HOUSE OF REPRESENTATIVES MARCH 30, 2023 Ms. SPANBERGER (for herself and Mr. GALLAGHER) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to establish a refundable tax credit for commercial truck drivers. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Strengthening Supply 4 Chains Through Truck Driver Incentives Act of 2023’’. 5 SEC. 2. CREDIT FOR COMMERCIAL TRUCK DRIVERS. 6 (a) IN GENERAL.—The Internal Revenue Code of 7 1986 is amended by inserting after section 36B the fol- 8 lowing new section: 9 VerDate Sep 11 2014 22:09 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2450.IH H2450 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 2450 IH ‘‘SEC. 36C. CREDIT FOR COMMERCIAL TRUCK DRIVERS. 1 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli- 2 gible individual, there shall be allowed as a credit against 3 the tax imposed by this subtitle an amount equal to 4 $7,500 for the taxable year. 5 ‘‘(b) ELIGIBLE INDIVIDUAL.—For the purposes of 6 this section, the term ‘eligible taxpayer’ means, with re- 7 spect to a taxable year, an individual— 8 ‘‘(1) who holds a valid Class A commercial driv- 9 er’s license (except as provided in subsection (c)) 10 who operates a tractor-trailer combination that 11 qualifies as a Group A vehicle under section 12 383.91(a)(1) of title 49, Code of Federal Regula- 13 tions, 14 ‘‘(2) whose adjusted gross income for the tax- 15 able year does not exceed— 16 ‘‘(A) in the case of a joint return or sur- 17 viving spouse, $135,000, 18 ‘‘(B) in the case of an individual who is a 19 head of household, $112,500, or 20 ‘‘(C) in the case of any other individual, 21 $90,000, and 22 ‘‘(3) who drove such a vehicle in the course of 23 a trade or business— 24 ‘‘(A) not less than 1900 hours during such 25 taxable year, or 26 VerDate Sep 11 2014 22:09 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2450.IH H2450 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 2450 IH ‘‘(B) in the case of an individual who did 1 not drive a commercial truck in the preceding 2 taxable year, not less than an average of 40 3 hours per week with respect to weeks during 4 the taxable year in which such individual drove 5 such a vehicle in the course of a trade or busi- 6 ness. 7 ‘‘(c) SPECIAL RULE FOR APPRENTICES.—With re- 8 spect to an individual enrolled in an apprenticeship pro- 9 gram registered under the Act of August 16, 1937 (com- 10 monly known as the ‘National Apprenticeship Act’), who, 11 upon completion or in the course of such apprenticeship 12 program will receive a Class A commercial driver’s li- 13 cense— 14 ‘‘(1) the requirements of subsection (b)(1) shall 15 not apply, and 16 ‘‘(2) such individual may count training hours 17 in such program as hours driving a vehicle described 18 in subsection (b)(1) for the purposes of this section. 19 ‘‘(d) SPECIAL RULE FOR NEW TRUCK DRIVERS.— 20 Except as provided in subsection (e), in the case of an 21 eligible taxpayer who did not drive a commercial truck in 22 the course of a trade or business during the preceding tax- 23 able year, subsection (a) shall be applied by substituting 24 ‘$10,000’ for ‘$7,500’. 25 VerDate Sep 11 2014 22:09 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2450.IH H2450 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 2450 IH ‘‘(e) SPECIAL RULE FOR DRIVERS WITH LESS THAN 1 1420 HOURS.—In the case of an eligible taxpayer who did 2 not drive a commercial truck in the preceding taxable year 3 who drives a commercial truck for less than 1420 hours 4 in the course of a trade or business during the taxable 5 year, the amount of the credit allowed by subsection (a) 6 shall be the amount that bears the same proportion to the 7 dollar amount (determined without regard to this sub- 8 section) with respect to the individual under subsection (a) 9 as the number of hours such individual drove a commercial 10 truck in the course of a trade or business during such tax- 11 able years bears to 1420 hours. 12 ‘‘(f) INFLATION ADJUSTMENT.—In the case of any 13 taxable year beginning after 2023, the dollar amounts in 14 this section shall be increased by an amount equal to— 15 ‘‘(1) such dollar amount, multiplied by 16 ‘‘(2) the cost-of-living adjustment determined 17 under section 1(f)(3) for the calendar year in which 18 the taxable year begins, determined by substituting 19 ‘calendar year 2023’ for ‘calendar year 2016’ in sub- 20 paragraph (A)(ii). 21 ‘‘(g) TERMINATION DATE.—This section shall not 22 apply to any taxable year beginning after December 31, 23 2024.’’. 24 (b) CONFORMING AMENDMENTS.— 25 VerDate Sep 11 2014 22:09 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2450.IH H2450 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •HR 2450 IH (1) Section 6211(b)(4)(A) of the Internal Rev- 1 enue Code of 1986 is amended by inserting ‘‘, 36C’’ 2 after ‘‘36B’’. 3 (2) Section 1324(b)(2) of title 31, United 4 States Code, is amended by inserting ‘‘, 36C’’ after 5 ‘‘, 36B’’. 6 (3) The table of sections for subpart C of part 7 IV of subchapter A of chapter 1 of the Internal Rev- 8 enue Code of 1986 is amended by inserting after the 9 item relating to section 36B the following new item: 10 ‘‘Sec. 36C. Credit for commercial truck drivers.’’. (c) EFFECTIVE DATE.—The amendments made by 11 this section shall apply to taxable years ending on or after 12 December 31, 2023. 13 Æ VerDate Sep 11 2014 22:09 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H2450.IH H2450 pbinns on DSKJLVW7X2PROD with $$_JOB

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