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Congress Renews Push to Slash Tax Burdens on Truckers

New bipartisan legislation targets the 12% federal excise tax and proposes refundable credits to bolster the driver pool.

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WASHINGTON, D.C. — Lawmakers have officially revived a pair of legislative efforts aimed at lowering the cost of entry for new recruits and reducing the heavy tax burden placed on owner-operators and fleets. Representatives Pat Ryan (D-N.Y.) and Zachary Nunn (R-Iowa) filed the Strengthening Supply Chains through Truck Driver Incentives Act this week, marking a renewed push to provide refundable tax credits to active CDL-A drivers and those entering accredited apprenticeship programs.

The trucking industry has long struggled with high turnover and the prohibitive costs of equipment upgrades, issues that these bills seek to address directly. By incentivizing both the recruitment of new talent and the retention of veterans, proponents hope to stabilize the supply chain. Simultaneously, Representatives Doug LaMalfa (R-Calif.) and Chris Pappas (D-N.H.) introduced the Modern, Clean, and Safe Trucks Act of 2025, which takes aim at the 12% federal excise tax (FET) currently applied to the purchase of new heavy-duty trucks and trailers.

The FET has been a flashpoint for years, with many owner-operators arguing that it discourages the adoption of newer, safer, and cleaner equipment. While both pieces of legislation stalled in previous congressional sessions, the current climate of rising operational costs has brought the issue back to the forefront of the legislative agenda. Representative Ryan noted that supporting the workforce is essential for keeping goods moving, highlighting that keeping skilled drivers behind the wheel is a primary factor in preventing the inflationary price spikes that hit American households.

What This Means for Drivers

Owner-operators stand to see immediate financial relief if the Modern, Clean, and Safe Trucks Act of 2025 successfully repeals the 12% excise tax. For a driver looking to upgrade their rig, this change could represent thousands of dollars in savings on a single capital expenditure. Meanwhile, the proposed tax credits for active drivers provide a direct boost to take-home pay, helping to offset the rising costs of fuel and maintenance that currently pressure the bottom line of every OTR truck driver.

Industry Reaction

The trucking sector has maintained a consistent stance that the current tax structure places an undue burden on those who keep the economy functioning. While the legislative path remains uncertain, the support from both sides of the aisle reflects a growing recognition that the industry is at a critical juncture regarding recruitment and retention. Many trucking companies hiring today are looking for ways to remain competitive, and these tax incentives could provide the necessary fiscal cushion to attract workers who might otherwise choose different career paths.

Key Points

  • The Strengthening Supply Chains through Truck Driver Incentives Act proposes refundable tax credits for qualified professional drivers.
  • The Modern, Clean, and Safe Trucks Act of 2025 seeks to eliminate the long-standing 12% federal excise tax on new heavy-duty equipment.
  • Legislators argue these measures will improve driver retention and lower consumer costs by strengthening supply chain efficiency.
  • Previous versions of these bills have failed to pass, making this latest attempt a critical test for industry-focused tax reform.

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Photo by Orhan Pergel on Pexels

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Dana Merritt
Freight market analyst and former dispatcher with 12 years at a regional flatbed carrier. Dana specializes in spot rates, load boards, and the economics of owner-operator life.