Strengthening Supply Chains Through Truck Driver Incentives Act of 2025
- Bill Number
- H.R. 2391
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-03-26: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-11T23:26:38Z
AI-Generated Summary
Purpose
The Strengthening Supply Chains Through Truck Driver Incentives Act of 2025 aims to encourage more individuals to become or remain commercial truck drivers by providing financial incentives. It addresses potential shortages in the trucking workforce, which is vital for supply chains, through a temporary tax credit.
Key Provisions
- Tax Credit Amount: Eligible individuals receive a refundable tax credit of $7,500 against their federal income tax for the taxable year. (A refundable credit means it can result in a payment from the government even if the taxpayer owes no tax.)
- Eligibility Criteria:
- Must hold a valid Class A commercial driver's license (CDL) and operate a tractor-trailer combination classified as a Group A vehicle under federal regulations.
- Adjusted gross income (total income minus certain deductions) must not exceed $135,000 for joint filers or surviving spouses, $112,500 for heads of household, or $90,000 for other individuals.
- Must have driven such a vehicle for at least 1,900 hours in the course of a trade or business during the taxable year, or (for those new to the field) an average of 40 hours per week in weeks worked.
- Special Rules for Apprentices: Individuals in registered apprenticeship programs (under the National Apprenticeship Act) who are training for a Class A CDL can qualify without the license. Training hours count toward the driving requirement.
- Incentives for New Drivers: First-year drivers get a $10,000 credit, prorated if they drive fewer than 1,420 hours (calculated as a proportion of hours driven to 1,420).
- Inflation Adjustment: Credit amounts increase annually after 2025 based on the cost-of-living adjustment used for income tax brackets (tied to 2025 as the base year).
- Duration and Effective Date: Applies to tax years ending on or after December 31, 2025, but ends for tax years beginning after December 31, 2026 (a two-year program).
- Administrative Details: The credit is added as new Section 36C in the Internal Revenue Code, with updates to related sections for refund processing and listings.
Significant Changes to Existing Law
- Introduces a new refundable credit (Section 36C) in the Internal Revenue Code, inserted after the existing premium tax credit (Section 36B) for health insurance.
- Makes conforming amendments to expand definitions of refundable credits in tax deficiency rules (Section 6211) and federal payment prohibitions (Section 1324 of Title 31, U.S. Code), ensuring consistent treatment.
- No changes to broader tax structures, but this adds a targeted incentive not previously available for truck drivers.
Potential Impacts
- On Citizens: Provides direct financial relief to qualifying truck drivers, potentially increasing take-home pay or refunds by up to $10,000 for newcomers. This could attract more people to the profession, especially apprentices and those from lower-income brackets, helping alleviate driver shortages.
- On Government Agencies: The Internal Revenue Service (IRS) will handle claims, verifications (e.g., hours driven, CDL status), and payments, increasing administrative workload and federal spending (estimated tax expenditure in billions over two years, though not specified in the bill). No direct impact on other agencies.
- On International Relations: None apparent; the bill focuses on domestic workforce incentives without trade or border implications.
- Broader Economy: May strengthen supply chains by boosting trucking capacity, indirectly benefiting industries reliant on freight transport like agriculture, manufacturing, and retail.
Main Stakeholders Affected
- Primary Beneficiaries: Commercial truck drivers with Class A CDLs, particularly new entrants, apprentices in training programs, and those earning under the income caps—estimated to include many in the long-haul trucking sector.
- Industry Groups: Trucking companies and associations (e.g., American Trucking Associations) that could see easier recruitment and retention of drivers.
- Government Entities: IRS for implementation; Congress and the Department of Labor (via apprenticeship ties) for oversight.
- Others: Taxpayers generally, as the credit reduces federal revenue; low- to middle-income workers in related fields who might enter trucking.
Notable Legal, Constitutional, or Political Implications
- Legal: The refundable nature ensures accessibility for low-income drivers, aligning with precedents for targeted credits (e.g., earned income tax credit). Verification of driving hours and CDL status may require new IRS guidance or forms, potentially leading to audits or disputes. The short duration (two years) allows for evaluation before extension.
- Constitutional: No evident issues; it falls under Congress's taxing and spending powers (Article I, Section 8). Income limits prevent it from being a broad entitlement, avoiding equal protection challenges.
- Political: Introduced by bipartisan sponsors (Republicans from Iowa, Nevada, and New York), it reflects efforts to support blue-collar jobs and infrastructure without new spending programs. The temporary sunset clause invites future debates on permanence amid ongoing driver shortage discussions (e.g., linked to supply chain vulnerabilities post-COVID). Could face opposition over added federal costs during budget constraints.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Rep. Nunn, Zachary [R-IA-3], Rep. Amodei, Mark E. [R-NV-2], Rep. Magaziner, Seth [D-RI-2]
Recent Actions
- 2025-03-26: Referred to the House Committee on Ways and Means.
- 2025-03-26: Introduced in House
- 2025-03-26: Introduced in House
Bill Versions
- Strengthening Supply Chains Through Truck Driver Incentives Act of 2025 — issued 2025-03-26 — PDF (5 pages)