U.S. Legislative Issues
Congress Extends Key Tax Credits and Incentives
On December 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes (PATH) Act of 2015, legislation overwhelmingly approved by Congress that extends or makes permanent over 50 expired tax credits and incentives that were previously allowed to lapse on December 21, 2014. Provisions significant to fleets include:
- Alternative Fuels — extends through 2016 the 50 cents per gallon alternative fuel tax credit and alternative fuel mixture tax credit. The credit is retroactive to January 1, 2015.
- Biodiesel — extends through 2016 the existing $1.00 per gallon tax credit for biodiesel and biodiesel mixtures, and the small agri-biodiesel producer credit of 10 cents per gallon. The provision also extends through 2016 the $1.00 per gallon production tax credit for diesel fuel created from biomass. The provision extends through 2016 the fuel excise tax credit for biodiesel mixtures. The credits are retroactive to January 1, 2015.
- Refueling property — extends through 2016 the credit for the installation of non-hydrogen alternative fuel vehicle refueling property. (Under current law, hydrogen-related property is eligible for the credit through 2016.) Taxpayers are allowed a credit of up to 30 percent of the cost of the installation of the qualified alternative fuel vehicle refueling property. The credit is retroactive to January 1, 2015.
- Bonus depreciation — extends bonus depreciation for property acquired and placed in service during 2015 through 2019. The bonus depreciation percentage is 50 percent for property placed in service during 2015, 2016, and 2017. The percentage phases down to 40 percent in 2018 and 30 percent in 2019. Bonus depreciation on a passenger automobile is limited to $8,000 in the first year.
- Mass transit — permanently extends the maximum monthly exclusion amount for transit passes and van pool benefits so that these transportation benefits match the exclusion for qualified parking benefits. These fringe benefits ($250 per month) are excluded from an employee’s wages for payroll tax purposes and from gross income for income tax purposes.
FMCSA Halves Random Drug Testing Rate for 2016
On December 21, 2015, the Federal Motor Carrier Safety Administration (FMCSA) announced that it will lower the annual minimum random drug testing rate for commercial driver license (CDL) holders from 50 percent of the average number of CDL driver positions to 25 percent for the 2016 calendar year, effective January 1.
According to FMCSA’s acting administrator, Scott Darling, the agency made the move because the positive rate for random drug testing fell below a 1 percent threshold for three consecutive years beginning in 2011. When the compliance data received for two consecutive calendar years indicates that the positive rate for controlled substances is less than one percent, the FMCSA Administrator has the discretion to lower the minimum annual testing rate.
FMCSA noted that the minimum annual percentage rate for random alcohol testing will remain at 10 percent for calendar year 2016 and that "if at any time the positive rate for controlled substances exceeds one percent, the testing rate will revert back to 50 percent."
FMCSA Announces Rule to Mandate Seatbelt Usage by All Occupants in CMVs
The Federal Motor Carrier Safety Administration (FMCSA) has announced a proposed rule that would require every passenger in a "property-carrying" commercial motor vehicle (CMV) to use a safety belt. Current federal laws already require CMV drivers to wear safety belts, but this proposed rule would hold both the motor carrier and CMV driver responsible for ensuring that all occupants in the vehicle are also using their seat belts.
The proposed rule notes that FMCSA used the word "occupant" in addition to "passenger" to clarify that the regulation would apply to any person in the property-carrying CMV, including instructors, evaluators, or any other personnel. FMCSA also notes that the proposed requirement would be applicable only if there is a seat belt assembly installed in the vehicle.
The agency’s release stated that approximately 275 occupants of large trucks killed in crashes in 2013 were not wearing their safety belts, according to the most recently available data from the National Highway Traffic Safety Administration. FMCSA says it will accept comments on the rule through January 25, 2016.
NAFA’s Safety Advisory Council and Government Affairs Committee are reviewing the proposed rule in anticipation of submitting written comments to FMCSA. If your fleet has a policy on seat belt use by occupants of a CMV, please forward your policy and any comments to NAFA’s U.S. Legislative Counsel, Pat O’Connor at poconnor@nafa.org.
