On July 4, 2025, President Donald Trump signed into law the One Big Beautiful Bill Act, a sweeping tax and spending package that dramatically reshapes the tax code and federal spending priorities. For those in the trucking industry, this legislation carries significant implications—many of them positive, said an industry leader—especially for owner-operators, small fleets, and capital-intensive carriers.

At its core, the bill makes permanent many provisions of the 2017 Tax Cuts and Jobs Act, while introducing new tax incentives and eliminating select regulations. Industry leaders are calling it a potential turning point for profitability, reinvestment, and long-term planning in logistics and transportation.

“Whether you’re a midsize carrier or a growing logistics company, the permanent 21 percent corporate rate provides long-term planning stability,” said Jeff Lovelady, chief financial officer and shareholder at Bell & Company. “This is especially helpful for incorporated fleets planning to reinvest in new trucks, trailers, and technology.”

For owner-operators who file as S corporations, partnerships or sole proprietors, the bill permanently locks in the 20 percent qualified business income deduction, allowing small trucking businesses to retain more earnings.

One of the biggest wins for trucking: the bill restores full bonus depreciation for new equipment purchases. Fleets and owner-operators can immediately expense the full cost of new trucks, trailers, and other capital assets, improving cash flow and encouraging reinvestment.

“Keep in mind, used equipment is also eligible as long as it was not previously owned by the taxpayer or a predecessor,” Lovelady said. “Section 179 increases the deduction cap to $2.5 million, with phase-outs starting at $4 million.”

The bill increases the standard deduction to $31,500 for families, simplifying filing for drivers who do not itemize and providing a modest tax break for many middle-income households.

New tax-advantaged savings accounts, similar to 529 plans, will be available to families with children born between 2025 and 2028 to help plan for future expenses.

“If you’re a trucker living in a high-tax state like California or New York, the bill raises the state and local tax deduction cap to $40,000, but only if your household income is under $500,000,” Lovelady said. “That’s a help for middle-income earners but won’t assist those running larger fleet operations with higher pass-through income.”

For multi-generational trucking businesses, the higher estate tax exemption can help with succession planning and reducing potential tax burdens when passing the company to the next generation.

A 1 percent tax on international remittances is expected to affect drivers who send money to family members abroad. This is more likely to affect foreign-born drivers supporting relatives overseas, Lovelady said.

The legislation repeals several green energy incentives, including electric vehicle tax credits, which may slow the industry’s shift toward electric freight vehicles. At the same time, cuts to safety-net programs — such as Medicaid reductions and stricter eligibility for food stamps — could affect lower-income drivers or those between jobs or recovering from injury.

“The bill provides the trucking industry with significant tools for growth, particularly through incentives for equipment investment and changes to the business tax structure,” Lovelady said. “However, it also presents risks by reshaping the federal budget and potentially contributing to higher interest rates over time.”

The legislation restores the use of depreciation add-back when calculating deductible business interest. Broader budgetary impacts include a 12 percent reduction in Medicaid over 10 years, stricter work requirements for the Supplemental Nutrition Assistance Program and projections that 10 million to 12 million Americans could lose health coverage by 2034.

“The Congressional Budget Office estimates the bill will add $2.8 trillion to the deficit over the next decade, with some independent estimates as high as $5 trillion,” Lovelady said. “The growing national debt could lead to higher borrowing costs, affecting truck financing and insurance markets in the long run.”

For owner-operators, fleet managers, and logistics firms, the bill’s tax provisions may offer the most favorable environment for reinvestment and business structuring in more than a decade, Lovelady said.

“However, it’s important to consult with your CPA and financial advisors to ensure you maximize the benefits and navigate the risks, particularly as the political and economic environment continues to shift,” he said. “Hopefully, it will be shifting for the better and make an impact in improving the bottom line for truckers nationwide and get us out of this drudgery that has gone on longer than expected.”