February 2026

As we embark on our 47th year in business, we have witnessed numerous transformations in the transportation industry. We have adjusted to these shifts and assisted our clients in complying with the constantly evolving federal and state regulations. We continue to learn daily and are committed to staying ahead of future changes to ensure your compliance. Our online driver management program has been updated to enhance security and accommodate the new drug and alcohol clearinghouse requirements.

Feel free to reach out to us with any transportation inquiries. If we don't have the answer, we will find it for you.

FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION - FMCSA

The Drug and Alcohol Clearinghouse has been operational since January 6, 2020. Carriers are prohibited from using a driver subject to drug and alcohol testing until a Drug and Alcohol Clearinghouse Query has been conducted. Additionally, all carriers must perform an annual query for each of their drivers who are subject to DOT drug and alcohol testing.

The DOT has established the 2026 annual drug testing rate at 50 percent and the alcohol testing rate at 10 percent for the covered drivers.

Motor carrier companies are randomly selected to submit an MIS - Management Information System Report of their drug and alcohol testing results from the prior calendar year. If selected, the reports are due by March 15. If you are in our drug testing consortium, send us the form, and we will file your report.

The FMCSA mandates that Class 1 carriers submit their financial reports annually to the agency. Carriers classified as Class I, with adjusted gross revenues of $3 million or more, must submit the annual report "Form M," excluding revenues from private carriage, compensated intercorporate hauling, and leasing vehicles with drivers to private carriers. Quarterly reports are not required anymore. Class II carriers, with adjusted gross revenues below $3 million, are exempt from any filing requirements.

Passenger carriers classified as Class I, with adjusted gross revenues of $5 million or more, are required to file Form MP-1 annually. In contrast, Class II passenger carriers, with adjusted gross revenues less than $5 million, are exempt from this filing requirement.

Carriers that are newly entering a class might not be required to file the returns. A worksheet provides an inflation factor to adjust the revenue from the last three years, which is used to calculate the adjusted gross income. This figure helps determine the appropriate class for the carrier. Reports for Form M and Form MP-1 are due by March 31st.

INTERNATIONAL FUEL TAX AGREEMENT - IFTA

All states have extended the expiration date for the 2025 IFTA licenses and decals to February 28, 2026, provided they were renewed by December 31st. If you haven't received your 2026 IFTA license and decals, please contact our office.

CONNECTICUT

The state implemented a mileage tax beginning January 1, 2023. Carriers are required to register for this tax and secure a Highway Use Fee Permit. Copies of this permit must be kept in vehicles traveling to the state.

Monthly tax filings are required, with the tax rate varying from 6.54 cents per mile for vehicles with a GVW of 26,000, up to 17.5 cents per mile for vehicles exceeding 80,000 GVW. A vehicle with an 80,000 GVW will incur a tax of 10 cents per mile. The tax filing for January must be submitted by February 28, 2026.

If you have not contacted us to establish an account in Connecticut and obtain a Highway Use Fee Permit, do so as soon as possible.

PENNSYLVANIA

The state's Corporate Tax Report mandates that carriers pay taxes on their corporate income annually. This tax applies to carriers traveling over 50,000 loaded miles within the state and making at least one pick-up or delivery there, or to any carrier with five percent or more of their miles in Pennsylvania and conducting more than 12 trips involving pick-ups and/or deliveries throughout the year. Other carriers are still required to file the return, but will be exempt from paying taxes if they do not meet the aforementioned de minimis criteria.