Congress Passes Major Tax Reform Package with Provisions for Trucking

President Trump has signed into law the sweeping tax reform bill designed to boost economic growth and deliver targeted relief to small businesses—including many in the trucking sector.

Known as the “One Big Beautiful Bill Act” (H.R. 1), the legislation passed along party lines and includes multiple provisions aimed at encouraging investment and reducing tax burdens across the transportation industry.

“Motor carriers, the overwhelming majority of which are small businesses that operate ten trucks or fewer, will now have the ability to plan for the future,” said Chris Spear, President of the American Trucking Associations.

Key Tax Provisions for Trucking

The legislation introduces several long-term financial incentives for fleets and owner-operators:

• Permanent Expansion of the 20% Qualified Business Income (QBI) Deduction:
  Trucking businesses structured as sole proprietorships, partnerships, or S corporations now have expanded and permanent access to the QBI deduction, preventing them from being disadvantaged against large corporations.
• 100% Bonus Depreciation Reinstated:
  Businesses can now immediately write off the full cost of trucks, trailers, and other qualified assets acquired after January 19, 2025, and placed in service before January 1, 2030 (or 2031 in some cases).
• Personal Tax Relief:
  The bill makes permanent the lower individual income tax rates and increases the standard deduction, potentially improving driver take-home pay.
• Estate Tax Exemption Increased:
  This offers long-term planning stability for family-owned fleets and small carriers.
• Education Savings Plans Expanded:
  Funds in 529 accounts can now be used to cover truck driver training costs, offering a pathway for more individuals to enter the industry affordably.

A Missed Opportunity on Overtime

While the bill delivers substantial tax relief, truck drivers remain excluded from one of its most advertised benefits: tax-free overtime pay.

The “no tax on overtime” provision applies only to workers required by law to receive overtime compensation. Truck drivers, however, are exempt from such protections under the Fair Labor Standards Act (FLSA), a nearly century-old rule that the Owner-Operator Independent Drivers Association (OOIDA) continues to campaign against.

“Unfortunately, truckers won’t benefit from this key provision,” said OOIDA President Todd Spencer. “It’s time for Congress to fix a nearly century-old oversight.”

OOIDA is pushing for the GOT Truckers Act (H.R. 1962 / S. 893), which would finally guarantee overtime pay for drivers by ending the outdated exemption. Without it, many truckers are paid only for the miles they drive, not the hours spent detained at loading docks, in traffic, or navigating poor weather. Some other reason OOIDA is pushing for GOT is:

• Safety Implications:
  OOIDA warns that detaining drivers without compensation increases fatigue and accident risk. A 15-minute delay at a dock has been linked to a 6.2% rise in crash rates, translating to over 6,500 additional accidents per year.
• Retention Crisis:
  A lack of overtime pay contributes to high driver turnover and pushes experienced operators out of the industry.

The tax bill represents a crucial policy win for small carriers and fleet operators by incentivizing investment and reducing long-term tax burdens. However, by failing to extend overtime protections to truck drivers, the fight for legislative action to address a long-standing labor issue in the industry continues.

Source: FreightWaves