Tax credit for cargo transportation, roadrunner auto transportation, and transport funding
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Tax credit available to help fuel transportation investments.
The United States currently has one of the highest tax burdens in the world on vehicles, with an average corporate tax rate of 29.5% of revenues, according to the Organization for Economic Cooperation and Development.
In the 2017 budget, the Administration committed to increasing the tax rate to 33% by 2021, to help fund infrastructure investments and promote economic growth.
The U.S. tax code currently includes a provision that would incentivize businesses to invest in new vehicle fleets.
In a statement, the Department of Transportation said that it has received a request from the Congressional Research Service to update the tax credit for vehicle transportation investment in the 2019-20 budget.
The Congressional Research Services has been requesting data on the cost-effectiveness of transportation investment projects, and the request will be considered by the Office of Management and Budget (OMB), the agency charged with funding federal agencies.
The office is responsible for administering the Taxpayer Relief Act of 2012, which repealed many of the taxes on motor vehicle manufacturers, including those on gasoline and diesel vehicles.
The Taxpayer Protection Act of 2015 included a provision to expand the tax deduction for vehicle-related vehicle investment.
That provision provided $2,000 in tax credits to individuals who purchase vehicles that are used to move freight, cargo, or passengers.
The Department of Treasury has not released a specific estimate of the impact of the new provision on the overall transportation investment.
The Office of Personnel Management released a summary of the cost of its new transportation tax credit and estimated that it would be available to businesses that invest $50,000 or more in new vehicles each year.
Tax credits for vehicle fleet investment would also be available in 2019, 2020, and 2021.
Tax credit available to help fuel transportation investments.The United States currently has one of the highest tax burdens in the…