Portage County Legal News

Proposed tax credit meant to rebuff truck driver shortage

KEITH ARNOLD
Special to the Legal News
Published: October 23, 2019

A duo in the Ohio House of Representatives has proffered a plan to spur commercial driver training to attempt to put an end the state's 15-year driver shortage, which, according to industry insiders, has skyrocketed in recent years.

Reps. Stephanie Howse, D-Cleveland, and Reggie Stoltzfus, R-Minerva, recently made the case for a measure that would authorize a nonrefundable income tax credit of up to $25,000 per year for training expenses paid by employers to train employees to operate a commercial vehicle.

Filed as House Bill 222, the legislation would cap annual credits at $3 million.

"Over two-thirds of freight is moved throughout the United States by trucks, and the drivers that move freight are a critical part of our country's economy," Howse told fellow House members seated for the Ways and Means Committee. "Although drivers play a key role in our country's economic success, we continue to face a growing workforce shortage due to retirement and a lack of skilled drivers with experience."

The Ohio Trucking Association, a backer of the bill, quoted data from a national survey that determined the driver shortage - recorded at 50,000 in 2017 - could swell to in excess of 160,000 by 2028 if recent trends continue.

The symptoms of the shortage have not gone unnoticed here, association officials said.

Stoltzfus, a small business owner, offered insight into the problem he's encountered with the issue as it relates to operation of either of the businesses he's operated.

"The hardest position to fill in my company has always been a CDL truck driver because they are in such great demand," he said during sponsor testimony of the bill. "After getting frustrated because I could not find drivers, I started training current employees to be drivers on my own dime.

"Having trained several employees of my own, I know what a huge expense this can be to a company."

His hope, the lawmaker added, is for the bill to assist other small companies across the state to have the resources they need to train drivers.

According to the bill, the income tax credit may be claimed by employers who are sole proprietors or organized as a pass-through entity such as a partnership, limited liability company, or S corporation owned at least in part by an individual, estate or trust.

Analysis of the bill determined the credit would not be available to corporations other than those electing S-corporation status.

The credit would be available for expenses, other than wages, paid to train employees to obtain a commercial driver's license or to operate a commercial motor vehicle.

Employers would be required to apply to the Development Services director with an

estimate of the training expenses he expects to pay in the upcoming year and the director may certify up to $50,000 of estimated training expenses as eligible for the tax credit.

In January, the following year, the employer then would apply to the Director for the tax credit - equal to half the actual training expenses.

Upon approval, the director would issue the employer a tax credit certificate indicating the amount of the credit and notify the director of taxation of the amount of each certificate.

"On the job training to obtain a CDL or to build upon skills already obtained by a driver will open doors that lead to lifelong employment opportunities to the employee," said Ohio Trucking Association President and CEO Tom Balzer. "Further, it shows an investment in the employee by the employer, which will ultimately assist in retaining drivers and stimulating the Ohio economy."

HB 222, which has garnered cosponsor support of 13 fellow lawmakers, had not been scheduled a third hearing at time of publication.

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