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What Owner-Operators Need to Know About the Inflation Reduction Act

On Tuesday, August 16, President Biden signed the Inflation Reduction Act of 2022 (Act) into law. The Act covers climate issues, taxes, healthcare, and other legislation in one bill, serving as a concise version of the Build Back Better bill.

What is the Inflation Reduction Act?

The main points of the Inflation Reduction Act of 2022 include:

  • 15% minimum corporate tax rate: Corporations that generate at least $1 billion in income will now have a 15% tax rate, and stock buybacks will have a 1% excise tax.
  • IRS investments: The IRS will receive $80 billion to hire new agents over the next ten years.
  • Prescription drug price reform: Medicare will now be able to negotiate the prices of particular prescription drugs, and in 2025 Medicare recipients will receive a $2,000 limit on annual out-of-pocket prescription costs.
  • ACA subsidy extension: The current medical insurance premiums under the ACA, which were set to expire January 1st, 2023, will now be extended through 2025.
  • Investments in energy security and climate change efforts: Households will receive tax credits to offset energy costs, the government will invest in clean energy production, and there will be tax credits for reducing carbon emissions.

On August 7, the Inflation Reduction Act went to the Senate and passed with 50 Democratic votes and zero Republican votes. Once it reached the House on August 12, bill 220-207 was passed.

Ultimately, small businesses and hardworking Americans will profit from this legislation through the investments in deficit reduction, increased manufacturing, lowered drug prices, and the push for corporations to give back to their community. But what does this bill mean for owner-operators within the transportation industry?

What Owner-Operators Need to Know

The Inflation Reduction Act will make significant changes to the United States environmental policies, health care policies, and tax codes. However, for owner-operators and other small trucking businesses, the Act’s extended changes to the ACA subsidies and IRS investments will likely be the most impactful.

The increased and extended ACA subsidies will allow owner-operators without employer-provided health insurance access to affordable health care coverage. Marc Ballard, who handles the NAIT’s various health care avenues, said, “We’re seeing about 90% of people who enroll can get a plan for $100 a month. Take, for example, a guy who may be 45 with a spouse and two kids, lives in Florida, and expenses a bunch of his income. … Let’s say his net adjusted income is $60,000. He grossed $200,000, but the reportable income is $60,000. He could literally be paying zero dollars for a health care plan.” Those making more money may face an increase in coverage costs by just a few hundred dollars a month.

And while the ACA subsidy changes won’t affect independent business people as much, it’s wise to use this extension period to shop for different health care plans. Freight rates are slowing due to the rise in fuel costs, and owner-operators’ incomes fluctuate as the pandemic period breaks down. So, now is the time to consider income projections and any potential family or personal status changes, which could unlock new health-expense savings.

The $80 billion investment in creating a larger Internal Revenue Service could also pose a threat to owner-operators with more frequent audits. The Associated Press did disclose that armed agents will not come knocking on owner-operators’ doors unless they are under criminal investigation for dealings in things such as contraband. Truck drivers must also be conscious of their increased chance of being audited. And while the IRS does have a backlog, the 87,000 incoming agents will quickly clear it, making time for them to look at newer returns. So, be sure to be extremely thorough when filing your taxes.

The Future is Green

The $369 billion investment in green energy will also notably change the trucking industry. In the next few years, trucking companies could receive tax incentives to purchase trucks that operate on alternative fuel sources, including electricity and biogas. Similar tax incentives will be made available for installing supportive infrastructure at trucking headquarters. The bill will also offer grant and loan programs to trucking businesses to encourage and fund their switch.

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Top 8 Ways to Celebrate Truck Driver Appreciation Week

Truck drivers have been essential to our nation since the end of the 19th Century. They work tirelessly to transport approximately 10 billion tons of freight every year safely, securely, and on time while also keeping our roads safe. We depend on these unsung heroes to fuel our economy, for without professional truck drivers, our tables, closets, and stores would be empty. 

Every year, we take an entire week to pay respect to and thank the country’s 3.6 million truck drivers for their hard work and dedication to one of our nation’s most demanding jobs. We call this week: National Truck Driver Appreciation Week

America observes National Truck Driver Appreciation Week during the second whole week in September. This year’s National Truck Driver Appreciation Week is from September 11th to the 17th, and we’ve compiled the top eight ways to celebrate.

8 Ways to Celebrate National Truck Driver Appreciation Week

1. Take advantage of parts and service deals.

Many companies are offering access to exclusive discounts, including Convoy, through their National Account at Goodyear. You can receive discounts on new tires, retread services, 24/7 roadside assistance, and more. Other companies, including Love’s Travel Stops and Pilot Flying J, will also offer promotional deals during National Truck Driver Appreciation Week.

2. Host giveaways all week long.

If you’re a fleet owner and operator, you can celebrate your drivers by hosting daily giveaways for items like iPhones, CB radios, or other things that drivers could find helpful. Daily drawings will keep everyone excited throughout the week. But to build more enthusiasm, why not raffle off a grand prize at the end of the week? A special grand prize could be a weekend getaway for two or a high-value tech item! Now’s the time to be creative (and generous).

3. Give a thoughtful gift.

Are you a family or friend celebrating your favorite truck driver? Do so by giving them a thoughtful gift.

Top-notch gifts for truck drivers include:

  • A new truck mattress
  • A Sirius XM subscription
  • Audiobooks or an Audible account
  • A Bluetooth headset
  • A 12V cooler
  • Their very own merch (shirts, hats, cups, etc.)

Browse other thoughtful gift ideas here.

4. Treat yourself to some lunch.

Some favorite food spots offer discounts to truck drivers on National Truck Driver Appreciation Week, including:

Denny’s – Truck drivers can receive a 10% discount key tag that is good to use at any Denny’s travel center location.

Love’s Travel Stops – Drivers can get a free Hot to Go sandwich or a Fresh to Go salad with an oil change purchase at any Speedco or Love’s Truck Care. Love’s will also offer daily specials on fresh food, snacks, and drinks.

Pilot Flying J – Freight haulers can get daily discounts on food and drinks, like a free drink on Mondays, Wednesdays, and Fridays.

5. Host a family and friends event.

Truck drivers spend long hours (sometimes even days) on the road and away from those they love. If you’re a fleet owner-operator, you could celebrate your drivers by throwing a family and friends event. This event could be as simple as a backyard barbeque or as fancy as a catered, sit-down dinner. You can incorporate raffle prizes, games, and other festivities into your event or hire vendors like traveling photo booths or local entertainers, giving everyone a chance to mingle and let loose. An appreciation event could also strengthen your relationship with your employees and their loved ones.

If schedules can’t align for an appreciation event, reward your drivers with experience vouchers they can share with their families, such as movie tickets, concerts, sporting events, etc. A gift certificate to a local restaurant would also make a perfect gift to show your appreciation.

6. Write a thank you letter.

Nothing says “I appreciate all you do” like a handwritten thank you card to your favorite driver. Whether you’re an owner-operator, a family member, a friend, or even a fellow driver, a simple card expressing gratitude and admiration goes a long way.

7. Give your favorite driver a radio shout out.

What could be cooler than telling your favorite truck driver how you feel? Maybe their favorite radio host giving them a personalized shoutout! Call one (or all) of your dearest driver’s favorite radio stations and request to give a shoutout. This could make a driver’s week or maybe their entire year.

8. Go beyond the week.

Above all else, the best way to show appreciation for truck drivers is to show your appreciation all year round. And using any of the options listed above are great ways to do just that. After all, I think we can all agree that our nation’s truck drivers deserve more than just a week of special treatment.

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How Does California’s AB5 Affect Truck Drivers?

A Trucker’s Guide to Assembly Bill 5

Regardless if you’re a California truck driver or not, you’ve probably heard about the recent employment legislation that could change the entire trucking industry. As of June 30, 2022, Assembly Bill 5 (AB5) is in effect and making sweeping changes throughout the transportation industry. Over the last few months, there has been an excessive amount of news and information surrounding the legislation and the impact it could potentially have. So, what’s the truth about AB5?

We’ve created a comprehensive guide to California’s Assembly Bill 5 that explains the bill and how it will affect truck drivers and the industry.

What is California’s AB5?

In September 2019, the California Governor, Gavin Newsom, signed Assembly Bill 5 into law to provide gig workers with more rights and benefits. Specifically, the law promises gig workers who classify as employees minimum wage with overtime pay, standard employee benefits, expense reimbursements, health insurance, adequate breaks, and other benefits that were not previously promised under California labor laws. So, how do employers determine who classifies as what?

The ruling of AB5 is based on a 2018 California Supreme Court ruling, known as Dynamex Operation West v. Superior Court. The legislation replaced the 11-prong Borello test with a 3-prong test and established that workers were classified as employees unless otherwise proven by the hiring company. The new 3-prong test, known as the ABC test, determines whether a person can be qualified as an independent contractor. 

For a worker to achieve this classification, the following three statements must be true:

  1. The worker is free from direct control or direction of the hiring entity when performing their duties.
  2. The tasks and services performed are outside the hiring entity’s usual business activities.
  3. The worker regularly performs independent services similarly performed for the hiring entity.

If a worker does not meet the three requirements, they must be classified or, in some cases, reclassified as an employee and receive the rights and benefits that come with that title. The problem with the new ABC test is that it has created rigorous standards for employers, and it’s challenging for workers to pass.

Pros and Cons of Assembly Bill 5

The main issue with AB5’s 3-prong test is that it has turned some independent contractors into employees. Specifically, item B poses the most risk to a worker’s livelihood because it states that a person performing any work similar to the company that hired them is presumed to be an employee. If a worker is classified as an employee, they must adhere to new standards that ultimately impact how they perform their job. For instance, while gig workers can choose when and when not to work, employees must abide by a set schedule.

However, the new legislation isn’t all bad. Pros and cons of AB5 include:


  • The legislation creates equal opportunities for gig workers and regular employees.
  • Qualifying as an employee entitles workers to benefits and other perks.


  • Being classified as an employee could cost workers their flexible schedule.
  • Reclassifying independent contractors as employees could increase prices for consumers.

And while AB5 does not guarantee that hiring entities will eliminate flexible scheduling, employers may exert more control once they begin incurring higher costs of paying employees versus contractors.

How will California’s AB5 impact the trucking industry?

The application of AB5 will undoubtedly impact motor carriers’ prices, routes, and services. On January 16, the District Court for the Southern District of California found AB5 preempted by the Federal Aviation Administration Authorization Act (FAAAA) and urged its application. This ultimately left the independent contractor model unaffected—at the time. The state of California was also pushed to appeal the lower court’s injunction to the 9th Circuit Court of Appeals (CTA). 

However, on April 28, 2021, the appeal was reversed after finding that implementing AB5 did not fully impact motor carriers’ prices, routes, or services. Therefore it did not fall under the FAAAA’s preemptive scope. So, the reversal cleared AB5 to take effect. But, on June 23, 2021, the 9th Circuit stayed the reversal’s effect, pending the resolution of the appeal to the United States Supreme Court.

Without comment or discussion, the Supreme Court decided not to review the case and left the 9th Circuit’s decision intact. AB5 was once again clear to take effect on motor carriers operating in the state of California. In the Supreme Court briefing, representatives from the State of California downplayed the impact AB5 would have on motor carriers and the trucking industry. 

Now, drivers operating in California are bracing themselves for the “highly impactful and disruptive” consequences of the bill. Many motor carriers and industry experts believe that additional legal challenges associated with AB5 and the ABC test are likely to occur. Still, for the time being, those operating in California will, unfortunately, have to carry the weight of AB5.

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Top 5 Toughest States for Speeding

Which states are toughest on commercial truck speeding-enforcement?

Every year the Commercial Vehicle Safety Alliance (CVSA) of truck-enforcement jurisdictions and other related agencies stage a traffic enforcement event called Operation Safe Driver. In 2020, the enforcement effort responded to an uptick in speed-related fatality crashes. And while the automobile accidents were across all vehicle types, most involved Class 8 vehicles.

After the 2020 Operation Safe Driver event, the CVSA found that truck drivers received nearly triple the number of speeding citations as passenger vehicle drivers. In 2021, the number increased again, with approximately 3,000 truck drivers receiving citations. Experts anticipate similar results following this year’s enforcement event. But, drivers are wondering: Are there some states that are more strict when it comes to speeding enforcement?

Which states have the strictest speeding laws?

Experts agree that there are states that are stricter when it comes to enforcing traffic laws than others. 

A recent study found that 75% of states have absolute speed limits, which means one mile per hour over the limit is enough for the state to convict you of speeding. The other 25% of the country has laws that allow you to plead your case in court. However, there are currently no states that have mandatory jail time for those convicted of reckless driving, which means you are liable to spend at least one night in jail if found guilty. 

And if you’re lucky enough to avoid jail time, you can still face a hefty fine. While the country’s average maximum speeding penalty is $742, there are some states where a single ticket could cost up to $5,000. 

The bottom line is that while keeping up with surrounding traffic may seem okay; there are some states where it’s ultimately safer to drive the exact speed limit.

5 toughest states for truck traffic enforcement


In Delaware, the driving population speeds 21% more than the national average. And in January of this year, the state implemented cameras along I-95 in hopes of deterring speeding. So, even if there’s no cop in sight, you still need to be cautious of cameras.

West Virginia

If you’re in Virginia, go slow. The state has one of the harshest legal systems around traffic violations. For example, driving 80 miles per hour anywhere in the state or going 20 miles per hour the posted speed limit will result in a reckless driving charge. And you can receive a $2,500 fine and a year in jail for reckless driving.


Iowa drivers are ticketed for speeding 66% more than average drivers, despite the state’s heavy police presence. In “The Hawkeye State,” there are 25 police officers per 10,000 drivers. Be sure to remember this ratio the next time you drive through Iowa.


While Idaho has a low ratio of speed traps per mile, it ranks considerably high for issuing speeding citations. However, the fines aren’t as intimidating as in other states. If you’re driving anywhere between one and 15 miles per hour above the speed limit, you will be fined $75. Anything over 16 miles per hour will earn you a $140 ticket. 

South Carolina

South Carolina is considered more dangerous than any other state for driving. According to the NHTSA’s Traffic Safety report, the state has the highest rate of traffic fatalities per million miles traveled. And similar to Iowa, the state has 24 police officers per 10,000 drivers, So if you speed in the Palmetto State, you not only risk getting a ticket, but you also risk getting into an accident.


How speeding could impact your career

As a truck driver, receiving a speeding ticket is no minor inconvenience. In fact, a speeding ticket could lead to your CDL being revoked. In most states, exceeding the speed limit by at least 15 miles per hour is considered a severe violation for commercial motor vehicles (CMV). The violation could lead to a minimum 60-day license suspension. If you receive three violations within three years, you could face a 120-day CDL revocation. These violations could also appear on your record, ultimately affecting your next job opportunity. Plus, you could be fined up to $500. 

So, while driving can be frustrating and sometimes mundane, it’s safer to drive wisely and within the speed limit. After all, nothing is worth risking your CDL license and, above all, your life.

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How to Motivate Young Truck Drivers

What Factors are Most Important to Younger Drivers?

In the last few years, the trucking industry has seen a tremendous shortage of drivers. For instance, in 2018, approximately 60,800 drivers left the industry for good. This year, about 84,000 drivers have exited their careers; if trends continue, we can expect fleets to be short 160,000 drivers by 2030. The question on everyone’s mind is: “Why does the truck driving shortage even exist?”

And while there are a number of reasons, many believe the shortage is caused by high turnover rates, dwindling compensation, and the aging of the workforce. The good news is that there may be a way to combat the ever-increasing shortage of drivers, and it starts with the next generation.

Currently, young people searching for a career don’t see truck driving as a viable path, and if fleets do not work to change this mindset, the shortage will only worsen. 

But, how exactly are you supposed to appeal to younger drivers? The answers may not be what you expect.

Why are younger drivers so important to the industry?

In 2020, people learned the trucking industry’s true value and felt its impact on our country’s infrastructure. Now, as the driver shortage wages on, more and more truck drivers are retiring, but they aren’t being replaced at an acceptable rate. And when they are being replaced, it’s not by younger drivers. However, if we want to see the industry recover and the economy thrive, younger drivers may be the answer.

Millennials are now the nation’s largest generation, making up more than a third of the country’s domestic workforce. And now, they are searching for a promising career path with good pay and benefits. They may not realize that truck driving offers that and so much more. But what if we told you that fleets could also benefit from hiring younger drivers?

Hiring younger drivers will help fleets stabilize as the tide of retirement accelerates within the industry. Younger drivers will also help trucking companies slow down turnover and keep up with the high demand for shipped goods. But, to hire these drivers, fleets must first appeal to them.

How can fleets motivate younger drivers?

Many think the only way to recruit young drivers is by offering a competitive wage. However, there are more critical factors that young drivers consider before jumping into a career. In fact, the American Transportation Research Institute (ATRI) found that only 40% of drivers (ages 21 to 30) consider pay to be the main factor when joining a fleet. In comparison, 60% believe other factors hold equal or even more importance in their decision. These factors include career stability, work-life balance, career benefits, and company culture.

So, as long as your trucking company can offer a positive working environment and decent benefits, finding younger drivers won’t be as hard as one might expect. 

4 tips for attracting younger drivers

Other ways to attract younger drivers include:

1. Embracing social media.

It’s an age-old truth: to reach your target audience, you must go where they go. And if you are trying to reach a younger audience, you must use social media. Research shows that 86% of people (ages 18 to 29) use social media, and 88% are on Facebook.

A great way to reach younger drivers is through social media campaigns on platforms like Facebook and Instagram. These platforms have consistently ranked highly as a thriving source for driver leads. Using social media and reaching out to your local driving schools is a great way to bring young drivers into the industry.

2. Updating your promotional materials.

ATRI found that young drivers are more likely to apply for a job with a carrier if there is more initial information and transparency. An example would be creating a job posting with explicit expectations and requirements. Your company could even benefit from posting videos and other content that help convey what a day in the life of a truck driver is all about. Almost 25% of younger drivers believe that fleets should incorporate younger adults in their non-recruitment advertisements and company materials.

3. Modernizing your benefits.

According to the CDC, truck drivers are twice as likely to suffer from job-related health issues, like obesity, high blood pressure, and problems that come with a lack of sleep. And in today’s society, health is taking priority in younger people’s lives. Simply updating your wellness benefits could be the difference between a young driver accepting a job offer and declining it.

We suggest:

  • Starting a company-wide wellness program or paying for a wellness app subscription
  • Introducing incentives for incorporating healthy habits
  • Giving discounts on health insurance premiums
  • Offering more PTO and bonus opportunities
  • Supporting your drivers’ wellness in any way you can

4. Offering consistent scheduling.

Truck driving is known for putting a strain on drivers and their work-life balance, thanks to long hours, last-minute changes, and erratic scheduling. Offering more predictable off days and consistent scheduling could attract younger drivers to your company.

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Rising Fuel Prices: An Ongoing Problem for Drivers

5 Tips for Conserving Fuel

These days, the glowing numbers on gas station signs cause drivers to wince as they pass. What once was affordable for most drivers now costs anywhere between $4 and $6 a gallon in some areas. This surge in fuel prices has become a top concern for consumers, affecting drivers and the broader economy. 

Higher fuel prices, especially diesel, strain owners and operators, affect the cost of goods that require transportation via truck, and so much more. In this article, we will look at the reason behind increasing fuel prices, who they affect, and what drivers can do to conserve their fuel.

Fuel prices continue to climb, but why?

The Russian invasion of Ukraine primarily influences today’s surging fuel prices, however, prices were on the rise well before the war. Before the COVID-19 pandemic settled in, energy producers reduced their investments and cut back on projects that were less than profitable. Once the pandemic hit, these same producers minimized output even more as the need for petroleum diminished due to quarantine restrictions.

The economy has since reopened, goods are being manufactured, and the roadways are filled once again. The reboot of society led to a surge in demand and a tightening oil market that led President Biden to tap into the Strategic Petroleum Reserve in hopes of leveling prices, but this plan failed.Once Russia invaded Ukraine, the already fragile energy market was sent spiraling downward. With Russia being the largest oil exporter in the world and the U.S.’s ban on Russian oil imports, U.S. oil reached its highest price point since 2008 at $130 per barrel.  

Oil companies are now reluctant to drill and face obstacles like labor shortages and increasing prices for parts and raw materials. On top of that, Russian petroleum product exports are being sanctioned, pushing the price of diesel higher than ever.

All of these factors contributed to the national average of a gallon of gas reaching $4.589, according to AAA. Now, every state in the U.S. averages more than $4 per gallon. In some areas, like California, they’re averaging above $6. And diesel prices retail at an average of $5.577 a gallon, which is 76% higher than last year’s average.

Who is affected by rising fuel prices?

Higher fuel prices impact not only consumer spending but also company spending, affecting many industries, including transportation. For instance, Target is the latest company to speak out about its struggles with higher costs. Target CEO Brian Cornell said, “We did not anticipate that transportation and freight costs would soar the way they have as fuel prices have risen to all-time highs.” Cornell estimates that the higher fuel costs will run the company approximately $1 billion in incremental costs this fiscal year. Walmart executives had similar concerns, “fuel ran over $160 million higher for the quarter in the U.S. than we forecasted.”

But the prices aren’t just impacting domestic costs. Companies like Tractor Supply and Amazon have noted that their import freight costs have increased over the last year. Currently, the cost to ship an overseas container has doubled compared to pre-pandemic rates. Even the airline industry is experiencing the effects of higher fuel prices. The CEO of United Airlines explained that jet fuel prices would cost the company $10 billion more than in 2019.

The ultimate worry for freight companies is how the higher fuel prices will affect the overall cost of operations. A carrier moving shipments from the West Coast to the East Coast will have to pay approximately $1,000 more in fuel costs than in 2021. If things continue in the same direction, this inflation will impact truckload shipping, ocean freight shipping, air cargo shipping, and train shipping costs, which will ultimately cause a domino effect throughout the economy.

Source: truckstop.com

5 Tips for Conserving Fuel

Conserving fuel is no longer just a want or a good deed. It’s now something we must do to save money. In the U.S. alone, the trucking industry consumes approximately 38 billion gallons of diesel annually. And 39% of drivers’ operating expenses come from fueling their rig. So, drivers must do what they can to improve their fuel economy.

Here are a few ways they can do so:

1. Drive more responsibly

Follow speed limit signs and take things slow. Studies show that every 5 mph over 65 mph yields a 7% decrease in fuel economy. You can also do things like:

  • Switch off the air conditioner (weather permitting)
  • Avoid idling unnecessarily
  • Turn off your engine when not in use
  • Use cruise control on the highways (if possible)

2. Improve your truck’s aerodynamics

Research shows that about half of a truck’s fuel is consumed, overcoming aerodynamic drag while traveling at highway speeds. Lucky, there are a few simple ways to improve your truck’s aerodynamics, including using a roof-mounted cab deflector, a deep angled bumper, or a sun visor to push wind to the top of your trailer. You can also use side fairings to avoid turbulence underneath your trailer.

3. Be conscious of the traffic conditions

Every time you have to restart your rig due to stop-and-go traffic, you use a considerable amount of fuel. So, it’s essential to use your GPS and monitor traffic conditions to get to your next location efficiently. Avoiding traffic will also help your clutch last longer.

4. Engine oil & fuel

By simply using the recommended grade of motor oil for your truck, you could improve your fuel mileage by up to 2%.

We also recommend:

  • Filling up your truck first thing in the morning
  • Pump fuel at a low setting to minimize vapors
  • Fill up well before you reach ‘Empty’

5. Conduct regular maintenance checks

Regular maintenance can go a long way in saving you fuel.

Maintenance practices include:

  • Filling up your tires and changing them when needed
  • Checking your trailer and drive axle alignment
  • Watch for any fluid leaks
  • Invest in an engine overhaul if yours is older
  • Replace any old or worn-out parts, like fuel injectors

At the end of the day, improving your fuel efficiency by 2% to 3% can help you save your hard-earned money and keep your rig running like new.

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