In July, President Trump’s latest tax and infrastructure bill, the “One Big Beautiful Bill Act,” was signed into law, introducing sweeping changes, with significant implications for the transportation industry. While some measures roll back climate-focused programs from previous administrations, others bring financial relief and infrastructure investment with real consequences for drivers, companies, and agencies across the sector.
Tax Breaks on Tips and Overtime: A provision of importance to taxi and for-hire vehicle (FHV) drivers is the new temporary above-the-line deductions for tips (up to $25,000) and overtime pay (up to $12,500). These deductions are phased out for individuals earning over $150,000 ($300,000 for joint filers) but could offer tax relief for many drivers.
EV and Hybrid Fees Dropped: The legislation ends the $7,500 federal tax credit for new electric vehicles (EVs) and the $4,000 tax credit for used EVs, effective September 30, 2025.
Infrastructure Spending Shifts and Rollbacks: The legislation repeals civil penalties for automakers who violate fuel efficiency standards and rescinds over $5 billion in unobligated funds from climate and equity-related transportation programs. This includes grants for neighborhood access, low-carbon materials, and clean port infrastructure.
Source: Windels Marx
