ATA to Congress: Helpful Tax Reforms for the Trucking Industry

How Congress Can Support America’s Trucking Industry

As Congress gets ready for new challenges, the American Trucking Associations (ATA) is calling on lawmakers to focus on the trucking industry. Trucks move 72% of all goods in the U.S. and support 8.5 million jobs. The trucking industry is essential to the economy, and Congress can help by removing barriers and creating policies that support truckers, improve safety, and reduce costs for everyone.

Ending the Federal Excise Tax (FET)

One of the ATA’s top requests is to get rid of the Federal Excise Tax (FET). This 12% tax was created over 100 years ago and makes it expensive to buy new trucks. Newer trucks are safer, cleaner, and better for the environment. For example, trucks made today produce half the CO₂ compared to trucks from 2010. Removing this tax would help trucking companies update their fleets, which would benefit everyone.

Using 529 Plans for Job Training

The ATA wants Congress to allow people to use 529 education savings plans for job training. Right now, these plans are mostly used for college expenses. Changing the rules would make it easier for people to afford training for trucking jobs, like becoming a driver or diesel mechanic. These jobs pay well and are important for the future of the trucking industry.

Keeping the Benefits of the Tax Cuts and Jobs Act

The 2017 Tax Cuts and Jobs Act (TCJA) made taxes easier and fairer for businesses, including trucking companies. The ATA wants Congress to keep and improve these benefits. Their proposals include:

• Keeping tax rates low: Low rates help businesses grow and hire more workers.
• Making the 20% Qualified Business Income deduction permanent: This deduction helps small businesses compete with larger corporations.
• Restoring bonus depreciation: This encourages companies to buy new, safer, and cleaner equipment.
• Changing estate taxes: This would help family-owned trucking businesses stay in operation.

These changes would give trucking companies more resources to invest in their workers and equipment.

Supporting Cleaner Fuel Options

The ATA supports extending tax credits for biodiesel and creating equal incentives for other renewable fuels. These policies would help trucking companies reduce emissions without forcing them to adopt unproven technologies.

Bringing Back the Moving Expense Deduction

The moving expense deduction is set to return in 2026. The ATA wants this deduction updated to help people relocating for work, including trucking jobs. This change could make it easier for families to move where jobs are available.

Attracting New Truck Drivers

The ATA feels that the trucking industry faces a nationwide driver shortage. The ATA suggests creating a tax credit to help people afford the training they need to start trucking careers. This would bring more drivers into the workforce and help meet the demand for freight transportation.

Incentives for Retreaded Tires

Retreaded tires save money and are better for the environment. The ATA is asking Congress to create a $30 tax credit for each tire retreaded in the U.S. This policy would also create more manufacturing jobs and reduce dependence on low-quality imports.

Flexibility for Supply Chains

The COVID-19 pandemic showed how vulnerable supply chains can be. The ATA believes that offering tax relief and accounting flexibility will help trucking companies adapt to challenges. These changes would ensure fleets can keep operating efficiently.

The Path Forward

The trucking industry keeps America moving. Congress has a chance to support truckers by making smart changes to the tax code, improving safety, and reducing costs. These steps will help the economy and make life better for everyone who depends on the goods delivered by trucks.

By supporting these priorities, lawmakers can help the trucking industry thrive while meeting the needs of workers, families, and businesses across the country.