The Inflation Reduction Act and How It Impacts Truckers
The Inflation Reduction Act has been passed across party lines (51-50 in the Senate, 220-207 in the House of Representatives), and was signed by Joseph Biden when it came across his desk. How is it going to impact the nation’s truckers?
Fast Forward on Green Energy
The most notable change that the signed law has on the trucking industry is the approximately $369 billion earmarked for the investment in green energy. Trucking companies may find themselves with tax incentives in the next few years to purchase trucks that run on alternative fuel sources, such as electricity or biogas, as well as similar tax incentives on installing supportive infrastructure at the trucking headquarters, to refuel those trucks.
Additionally, the signed law will offer grant and loan programs to companies to help encourage them to switch.
Higher Audit Risk
There has been much hubbub about the $80 billion earmarked to expand the Internal Revenue Service, some of it true and some of it fluff. The most likely outcome of a larger Internal Revenue Service is higher rates of audits, but the Associated Press reports that armed agents do not come to anyone’s door unless the person in question is under criminal investigation such as dealing in contraband. Truckers will not need to worry about this.
What may concern truckers is the increased chance of audit. While the IRS does have a backlog, adding 87,000 employees will eventually clear it and leave the employees with some free time to look over newer returns coming in. Make sure to be extra thorough when filing your taxes to keep your personal risk of an audit low.
At this point it is hard to say whether the Inflation Reduction Act will have a net-positive or a net-negative effect on the trucking industry. Hindsight is a privilege only afforded to those who have experienced the event.
At the very least, the increase in spending provided by the Inflation Reduction Act should increase the demand for trucking services, as companies will need the goods to manufacture cleaner energy goods delivered from one place to another. If some of these jobs are from the United State Government itself, they may prove to be extremely lucrative!
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