Federal and state taxation
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Clean Fuel Tax Credits Get Extended
The Inflation Reduction Act had a nice benefit buried within the pages in regards to alternative fuel, an extension of credits through December 31, 2024! The credits had previously expired December 31, 2021. This extension includes the alternative fuel and the alternative fuel mixture credit. Alternative fuels include natural gas, propane, liquefied hydrogen, P-Series fuel, […]
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The Good and Bad with the Employee Retention Credit
With almost all of the COVID relief programs having run their course and a new landscape ahead for businesses recovering from the experiences of the past 26 months, some owners are still losing sleep at night wondering how they’re going to rebuild, whether they claimed all funds that were made available by the various legislative […]
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Research and Development Tax Credits
Normally research and development (R&D) tax credits aren’t something we think of in the transportation industry. However, with all of the technological advances that have happened in the past few years, and companies looking to upgrade their current technology and software, it’s something that shouldn’t be overlooked. Michael De Prima and Mark Hall from CLA’s […]
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Commercial Vehicles Included in the Push for Clean Energy and Other Tax Changes
The Inflation Reduction Act of 2022 (IRA) had plenty to unpack, but not the tax increases initially proposed under the Build Back Better Act which fizzled due to a lack of support. The IRA was significantly scaled back and included very little tax law changes and perhaps none that will effect the majority of the […]
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Will a Fuel Tax Holiday Provide Relief?
President Biden recently called for a fuel tax holiday to help reduce the costs at the pump. Will it help? Sure, a little bit. A little bit are the key words. The President is pushing for a three-month holiday that would remove the federal fuel tax. Currently, the federal tax is 18 cents per gallon […]
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Mileage Rates Increase for Remainder of 2022
On June 9th, the IRS announced that for the final 6 months of 2022 the optional standard mileage rates to determine the deductible costs of operating an auto for business and certain other purposes would be increased. The updated mileage rate for business travel will be 62.5 cents per mile, up from 58.5 cents per […]
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Business Interest Expense Limitations
As Nate mentioned last week in his early tax planning post, one of the big changes for 2022 is the limitation for business interest expense. While the law may not be new (it’s been around since the Tax Cuts and Jobs Act in 2017), it’s likely going to be the first time it will have […]
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The Year of Early Planning
Proposed tax legislation may not be moving quickly, but that doesn’t mean there isn’t significant changes that warrant early planning for 2022.
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Consider Your Leverage
For asset-based carriers trucking is usually a high leverage business. It involves constant equipment trade cycles that often requires financing to be able to afford the costs or protect cash reserves. With inflation and technological improvements, we have seen equipment costs rise and expect that trend to continue. Why do I mention this? Because interest […]
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Further Guidance on Per Diem Deductibility
Back in November we posted about guidance under IRS Notice 2021-63 allowing for the temporary 100% deduction for the meals portion of the special per diem rate for motor carriers with drivers who are subject to the hours of service rules. Sometimes, guidance can create more confusion and questions than clarity. Under Notice 2021-63 it […]