House of Representatives Introduces SSCTTDI Act
How is that for a name?
It is no surprise to anyone that supply chain problems are causing shortages in the economy. The House of Representatives is hoping to help remedy this through the power of tax incentives, namely the Strengthening Supply Chains Through Truck Driver Incentives (SSCTTDI) Act.
Details
Were SSCTTDI to be signed into law, it would establish a two-year tax credit of up to $7,500 for those with a Class A CDL and drive at least 1,900 hours in the year. Truckers who drive less may be eligible for a partial credit. There is also a tax credit of up to $10,000 for new drivers. Both forms are set to be protected from inflation by matching to the Consumer Price Index annually.
A tax credit is different from a tax deduction. Rather than reducing the amount taxed by Uncle Sam, a credit goes directly against the tax liability. Drivers may be due for a massive tax refund, were this bill to become law.
Truckers would be ineligible for the credit if they are above certain adjusted gross income thresholds: $90,000 for single, $135,000 joint, and $112,500 for Head of Household.
The bill is bipartisan in nature, spearheaded by Reps. Mike Gallagher (R-Wisconsin) and Abigail Spanberger (D-Virginia). “Our legislation takes a commonsense step towards addressing our chronic driver shortage,” Spanberger believed. “By creating a refundable tax credit for the men and women who keep our goods flowing, we would encourage more young people to hop in the driver’s seat, reduce headaches for trucking businesses, and make sure experienced drivers are rewarded for their hard work.”
Conclusion
The bill is still in its starting stages: for it to become official, it would have to pass the House, Senate, and Joe Biden. Considering recent supply chain shortages that have impacted everything from aluminum to zinc, it would be unsurprising for this bill to eventually become law one day. What time it becomes a law is anyone’s guess, but we are hoping drivers will be paying less in taxes soon!
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