Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Tax Credit: A Win-Win

A measure in Congress proposing to give truck and bus owners tax credits for putting advanced safety devices on their equipment.

by Doug Condra, President
November 1, 2007
Tax Credit: A Win-Win

 

4 min to read


We have a measure in Congress proposing to give truck and bus owners tax credits for putting advanced safety devices on their equipment. It's about time.

The bill would amend the Internal Revenue Code and reward carriers for using technology such as collision and lane departure warning systems, stability controls and brake stroke monitoring. Called the Commercial Motor Vehicle Advanced Safety Technology Act, it applies to trucks rated at 26,000 pounds and up.

Ad Loading...

It would grant a corporate income tax credit equal to half the cost of a qualified safety system, up to $1,500. Maximum credit per vehicle would be $3,500, and a fleet would be limited to a total $350,000 credit per year. It would expire at the end of 2012.

Qualified safety systems could be put on new trucks or retrofitted. Manufacturers would have to certify the system is right for the vehicle, and installers would have to certify that any retrofits work. The Federal Motor Carrier Safety Administration and National Highway Traffic Safety Administration would have the authority to add other systems to the qualified list.

It's a sensible, compact package, and it didn't just come out of thin air. The Heavy Duty Manufacturers Association and its parent, the Motor & Equipment Manufacturers Association, worked with Rep. Mike Thompson (D-Calif.) to draft and introduce the bill.

As it was being drafted, an ingenious HDMA and MEMA ride-and-drive demonstration at Robert F. Kennedy stadium - right in the politicians' backyard - gave legislators and federal agencies a first-hand look at the effectiveness of the safety systems. A dozen manufacturers showed safety and energy technologies to a crowd of about 150. It was great strategy, and couldn't help but impress some powerful politicos.

The bill, H.R. 3820, was championed by Thompson, but it has bipartisan support. Four other Democrats and three Republicans signed on to its introduction. They are: Ron Lewis (R-Ky.); Heath Shuler (D-N.C.); Steve LaTourette (R-Ohio); Peter DeFazio (D-Ore.); Sander Levin (D-Mich.); Ellen Tauscher (D-Calif.), and Mike Rogers (R-Mich.).

Ad Loading...

Just one crash can ruin a fleet - especially a small fleet that may not have deep pockets. Studies by FMCSA put the average cost of a heavy truck wreck at $166,000 for property damage and injuries. If there's a fatality involved, the average leaps to some $3.5 million.

Safety technology works. Just ask innovators like U.S. Xpress, Maverick, Boyle Transportation and Saia Motor Freight, whose use of the systems has more than paid for them in accident prevention.

But it's tough for a lot of truck buyers to shell out the extra bucks. They opt to roll the dice and not buy, betting they'll be free of serious accidents. Tax credits would make the systems more affordable, and buyers would benefit further from savings on accidents they don't have.

But this is far from a slam-dunk. There will be a government analysis of how much the bill's tax credits will cost the treasury, and whether the loss can be covered elsewhere, such as a budget cut in another program. There's a long waiting line for those kinds of monies.

It is critical that all elements of the trucking community be on board with a clear-cut, ringing endorsement of this legislation. It is also critical that it be kept simple. If other items are hung on it - like retroactivity, more devices or tax breaks for other types of systems - it will likely be a dead duck.

Ad Loading...

If you think this is pushing Big Brother on the industry, consider that it is a financial incentive, still giving buyers an option. Keep in mind, there are plenty of people around - with power of their own - who would love to see the government require this equipment.

The bigger picture that Congress must see is that injuries and deaths will be prevented by passage of this bill. Unfortunately, the monetary savings those accident reductions will bring to society won't be part of the cost justification equation. That's not how the system works.

Regardless, this is win-win legislation. Congress needs to get it done.

E-mail Doug Condra at dcondra@truckinginfo.com, or write P.O. Box W, Newport Beach, CA 92658.

 

Subscribe to Our Newsletter

More Fleet Management

Daimler-Class8 partnership.
Fleet Managementby News/Media ReleaseFebruary 2, 2026

DTNA Partners with Class8 to Expand Digital Services for Freightliner Owner-Operators

A new partnership brings free wireless ELD service plus load optimization and dispatch planning tools to fourth- and fifth-generation Freightliner Cascadia customers, with broader model availability planned through 2026.

Read More →
SponsoredFebruary 1, 2026

Reducing Fleet Downtime with Advanced Diagnostics

This white paper examines how advanced commercial vehicle diagnostics can significantly reduce fleet downtime as heavy duty vehicles become more complex. It shows how Autel’s CV diagnostic tools enable in-house troubleshooting, preventive maintenance, and faster repairs, helping fleets cut emissions-related downtime, reduce dealer dependence, and improve overall vehicle uptime and operating costs.

Read More →
SponsoredFebruary 1, 2026

Stop Watching Footage, Start Driving Results

6 intelligent dashcam tactics to improve safety and boost ROI

Read More →
Ad Loading...
M&A illustration with Werner and FirstFleet logos
Fleet Managementby Deborah LockridgeJanuary 29, 2026

Werner Expands Dedicated Fleet Nearly 50% With FirstFleet Acquisition

The $283 million acquisition of FirstFleet makes Werner the fifth-largest dedicated carrier and pushes more than half of its revenue into contract freight.

Read More →
Bobit Business Media B2X Rewards.
Fleet Managementby News/Media ReleaseJanuary 29, 2026

Bobit Business Media Launches B2X Rewards Engagement Program

B2X Rewards is a new, gamified rewards program aimed at driving deeper engagement across BBM’s digital platforms, newsletters, events, and TheFleetSource.com.

Read More →
Trucking Trends series graphic
Fleet Managementby Deborah LockridgeJanuary 29, 2026

AI is Reshaping Trucking in 2026, from the Back Office to the Shop

Trucking’s biggest technology shifts in 2026 have one thing in common: artificial intelligence.

Read More →
Ad Loading...
Column graphic illustration with Deborah Lockridge head shot and a small fleet truck in the background
Fleet Managementby Deborah LockridgeJanuary 27, 2026

Why Small Trucking Fleets Are Still Standing [Commentary]

Why discipline, relationships, and focus have mattered more than size for smaller trucking fleets during the freight recession.

Read More →
Fleet Managementby Deborah LockridgeJanuary 23, 2026

Cargo Theft Is Surging. A Bill in Congress Could Help. [Video]

Cargo theft losses hit $725 million last year. In this HDT Talks Trucking Short Take video, Scott Cornell explains how a bill moving in Congress could bring federal tracking, enforcement, and prosecutions to help address the problem.

Read More →
CargoNet infographic showing 2025 cargo theft trends
Fleet Managementby Deborah LockridgeJanuary 22, 2026

Cargo Theft Losses Jump 60% in 2025 as Criminals Target Higher-Value Freight

Cargo theft activity across North America held relatively steady in 2025 — but the financial damage did not, as ever-more-sophisticated organized criminal groups shifted their cargo theft focus to higher-value shipments.

Read More →
Ad Loading...
Phillips Connect -- McLeod smart trailer TMS.
Fleet ManagementJanuary 22, 2026

Phillips Connect, McLeod Integrate Smart Trailer Data into TMS Workflows

A new partnership between Phillips Connect and McLeod allows fleets to view trailer health, location, and cargo status inside the same McLeod workflows used for planning, dispatch, and execution.

Read More →