Legislative Bulletin - August 6, 2009

Tax Credits for Commercial Truck Safety Systems Proposed in U.S. Senate

TRALA-supported legislation that would establish federal tax credits on the purchase of advanced safety technology systems for commercial trucks was introduced in the Senate on August 6, 2009. Senate Bill 1582, introduced by Senator Debbie Stabenow (D-MI), would provide a tax credit of up to 50% of the cost of eligible safety systems installed on trucks weighing over 26,000 pounds. The Senate bill is identical to HR 2024, introduced in the House of Representatives earlier this year by Congressman Mike Thompson (D-CA) and strongly supported by TRALA. Senator George Voinovich (R-OH) and David Vitter (R-LA) are original cosponsors of S 1582, also known as the “Commercial Motor Vehicle Safety Technology Act.”

The tax credits established by S 1582 would be limited to $1500 per safety system and $3500 per vehicle. Each taxpayer’s tax credits under this legislation would be limited to $350,000 per year. Systems listed as eligible for the tax credit under S 1582 include brake stroke monitoring systems, lane departure warning systems, collision warning systems, and vehicle stability systems. The legislation also provides the authority for the National Highway Traffic Safety Administration (NHTSA) or the Federal Motor Carrier Safety Administration (FMCSA) to identify other safety systems and equipment as eligible for the federal tax credit.

TRALA has been a strong supporter of federal tax credits for advanced safety technology and safety equipment for commercial vehicles. Earlier in 2009 TRALA Chairman Tom Thayer met with Congressman Mike Thompson to discuss strategy for passing the House version of the Commercial Motor Vehicle Safety Technology Act. TRALA will be working with both the House and Senate sponsors of the legislation, as well as with industry stakeholders, to encourage support for both HR 2024 and S 1582.

For more information on TRALA’s efforts to support passage of the Commercial Motor Vehicle Safety Technology Act, contact TRALA’s Tom James at 703-299-9120 or at tjames@trala.org.