WASHINGTON — President Trump is poised to sign a substantial tax and spending cuts package that Congress approved on Thursday, which features tax incentives likely to enhance investment in the trucking sector.
The measure, known as H.R. 1 or the One Big Beautiful Bill Act, was opposed unanimously by Democrats and passed narrowly along party lines following an extensive, record-breaking speech by House Minority Leader Hakeem Jeffries (D-N.Y.) that delayed the vote for nearly nine hours.
A key tax provision that stands to benefit trucking companies is the permanent extension and enhancement of the 20% deduction for Qualified Business Income (QBI), initially part of the Trump administration’s 2017 tax cuts and set to expire at year’s end.
This QBI deduction allows trucking firms, along with other businesses structured as sole proprietorships, partnerships, and S corporations, to avoid a tax disadvantage compared to larger corporations. The updated QBI provisions broaden eligibility and provide an inflation-adjusted minimum deduction of $400 for businesses with specific QBI levels.
In addition, Congress reinstated 100% bonus depreciation for qualified assets acquired after January 19, 2025, and used before January 1, 2030 (or 2031 in certain scenarios). This allows small truck operators to immediately write off the full cost of new equipment, incentivizing investments in trucks and technology.
Truck drivers might also see an increase in their take-home pay as the legislation makes the individual income tax rates and the higher standard deduction from 2017 permanent. Moreover, family-owned trucking firms can benefit from a permanent extension and increase of the Estate Tax Exemption, providing stability for future business planning and transitions.
Concerns Over Overtime Pay Exemption
The Owner-Operator Independent Drivers Association (OOIDA), representing small-business truckers, expressed disappointment over some provisions. OOIDA opposed elements in the bill’s initial draft, including a proposed $100 annual fee for accessing a new FMCSA website containing motor carrier fitness data, which was later removed.
OOIDA highlighted that truckers voluntarily receiving overtime from their employers would not benefit from the much-discussed “no tax on overtime pay” provision, as only those required by law to receive overtime are eligible. Since the trucking sector is exempt from this requirement, OOIDA President Todd Spencer emphasized the need for Congress to rectify this long-standing issue by passing the bipartisan GOT Truckers Act to extend overtime pay and tax relief to truckers.
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