U.S. Legislative Issues

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In December 2014, Congress voted to provide a one-year retroactive extension of more than 50 tax incentives and deductions, commonly referred to as tax extenders. Among these provisions are several important to fleets, including tax credits for biodiesel, propane and CNG as vehicle fuels. These credits amount to a $0.50 per gallon alternative fuel tax credit for natural gas and propane and a $1.00 per gallon tax credit for biodiesel.

Another incentive is the Bonus Modified Accelerated Cost Recovery System or "bonus depreciation" program, which allows extra depreciation to be taken for 50 percent of a truck’s purchase price and an extra bonus depreciation deduction of up to $8,000 for automobiles, light trucks, vans and SUVs. Also included was a refueling infrastructure credit that provides a 30 percent investment tax credit for alternative vehicle refueling property, up to $30,000. Eligible refueling property includes fuel pumps for ethanol, biodiesel, liquefied hydrogen, and compressed or liquefied natural gas. Unfortunately, the bill only provided for an extension of these incentives through 2014.

To urge Congress to act immediately to extend, enhance or make permanent the expired and expiring tax provisions, NAFA signed onto a broad tax extenders coalition letter that was sent to the full House and Senate on Sept. 10, 2015. The letter was signed by more than 2000 companies, associations and organizations, representing millions of individuals, businesses of all sizes, community development organizations and non-profits.

A majority of members from both parties are eager to extend or make permanent the 54 tax extender provisions, but disagreements over how to offset the $940 billion price-tag remain. In the interim, the House Ways and Means Committee will again take up a bill to make the bonus depreciation deduction permanent on Sept. 16. The House passed a similar bill last year, but it was not taken up in the Senate.

Pressure from the business community to take up tax extenders is reportedly being felt by leaders in Congress. "We're going to do an extender package. I hope we don't do it at the end of the year like we did last year, because taxpayers then end up going through the whole tax year not knowing the tax implications of the decisions they're making...I don't like it and hopefully we won't do that," Senate Majority Leader Mitch McConnell (R-KY) said.  
 


In late July, the AFL-CIO and a host of other labor, medical professional, and civil rights organizations penned a joint-letter to members of the House Transportation and Infrastructure Committee urging them to reject efforts to allow hair to be used for federal drug tests before the "validity and reliability of this testing method can be determined by the Department of Health and Human Services." Specifically, the coalition asked that the current hair specimen testing proposals under consideration in Congress, including Section 32611 of the DRIVE Act (H.R.22) and the Drug Free Commercial Driver Act of 2015 (H.R. 1467/S.806), not be included in a multi-year highway bill. In addition to questioning the science behind the tests, the group also said hair testing is racially biased.

The American Trucking Association (ATA) is pushing back against the claims made by the coalition with its own letter, sent to congressional transportation leaders late last month. In it, the ATA argues that the claims made by the AFL-CIO and others are "based on false notions and outdated science" and that hair testing serves as "an effective tool for identifying drug users due to its long detection window and because it is difficult for donors to beat the test." The letter cites several surveys of large carriers that found drivers failing hair tests, but passing urine tests. The letter also highlights how two large carriers employing over 25,000 drivers reduced their post-accident testing rates to zero after implementing pre-employment hair tests.

ATA says that due to the redundant cost of conducting both Department of Transportation (DOT) urine tests and hair tests, many fleets have been discouraged from adopting hair testing programs altogether. Further, ATA charges that because hair testing is not recognized as an alternative specimen by DOT, positive hair test results cannot be reported to subsequent employers which ultimately threatens public safety.



Congress is facing an October 29, 2015 deadline for extending highway programs, but members say the road to a final deal is littered with obstacles. As many expected, the House Transportation and Infrastructure Committee announced earlier this month that it will put off its plans to consider a six-year highway bill, offering little in the way of a timeline for when it will take up a measure. The announcement and lack of timeline has left many skeptical that the House will be able to pass its own long-term bill and strike a compromise with the Senate by the October deadline.  

If the House is unable to make progress on highway policy in the coming months, it could be forced to accept a Senate highway bill passed this summer that House leaders have repeatedly said is stuffed with deficiencies. The Senate bill authorizes highway policy for six years, but includes funding for only three years.
 

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