The current federal excise tax has become a barrier to the progress,” said Senator Cardin.įor more information on FET, including a copy of S. “Our tax policy is one of the most effective ways Congress can encourage cleaner and greener technology.

Adding the tax on top of the costs associated with the latest emissions technology for heavy-duty trucks forces many small businesses to delay purchasing a new vehicle. The FET, initially created in 1917 to help pay for World War I, is the highest percentage excise tax levied by the federal government. Senator Young stated, “Our bipartisan bill will open the floodgates to investment in safer and cleaner trucks and trailers that will benefit our economy and the environment.” Additionally, repeal would clear the way to better alternative funding mechanisms for highway repair and maintenance. Repealing the FET would allow purchasers to integrate cleaner and safer vehicles into their fleet and will help protect U.S. “We believe repeal will help fleets to replace older and less fuel-efficient heavy-duty trucks with safer and more environmentally friendly new trucks.” “NTEA is a longstanding advocate of repealing the more than 100-year-old burdensome and complex tax and is a founding member of the Modernize the Truck Fleet coalition,” said Steve Carey, NTEA’s president and CEO. Eliminating the FET would provide Congress the opportunity to create long-term stability in the Highway Trust Fund by replacing the FET with a funding source not based on annual truck sales. NTEA calls on Congress to repeal the FET as a part of any upcoming infrastructure legislation.

This bipartisan bill would repeal the 12 percent Federal Excise Tax (FET) on heavy trucks and trailers. 2435, the Modern, Clean, and Safe Trucks Act of 2021. Senators Todd Young (R-IN) and Ben Cardin (D-MD) for introducing S. Life-saving, driver-assist safety technologies that weren’t widely available or effective a decade ago, such as automatic emergency braking, forward collision mitigation, and electronic stability technology, are now offered in new models.The bill would repeal the 12 percent FET on heavy trucks and trailers and is an opportunity to create long-term stability in the Highway Trust Fund with a funding source not based on annual truck salesįarmington Hills, Mich.- NTEA – The Association for the Work Truck Industry commends U.S. Since 2010, more fuel-efficient diesel trucks have saved 101 million barrels of crude oil and reduced CO2 emissions by 43 million tons. Over the past 20 years, cleaner fuel and engines used in new trucks have combined to reduce nitrogen oxide emissions by 97 percent and particulate matter emissions by 98 percent, according to ATA. This increases the cost of new equipment significantly and therefore discourages trucking companies, especially tank trucking companies, from acquiring new equipment. The coalition is urging Congress to include the Young/Cardin legislation in the bipartisan infrastructure legislation. Currently, there is a 12 excise tax imposed on the first-time purchase of commercial motor vehicle tractors and trailers. Repeal of the FET would allow fleets to replace older heavy-duty trucks with “newer, safer and greener” trucks and trailers. trucking industry, according to the coalition. The proposed legislation is intended to modernize America’s heavy-duty truck fleet and protect the 1.3 million jobs supported by the U.S. “By repealing this antiquated tax, Congress can deliver a win for the environment, highway safety, manufacturing jobs, and supply-chain efficiency.”īill Targets Truck Excise Tax – “The proposed legislation is intended to modernize America’s heavy-duty truck fleet and protect the 1.3 million jobs supported by the U.S. “The federal excise tax on heavy trucks is a relic from the first World War that’s now serving to keep cleaner, safer trucks off of our nation’s roads today,” said Chris Spear, ATA’s president and chief executive. Ben Cardin (D-Maryland), both members of the tax-writing Senate Finance Committee, which has jurisdiction over transportation-related taxes. Bill Targets Truck Excise Tax – “Bipartisan legislation to repeal the 12-percent federal excise tax (FET) on the sale of heavy-duty trucks and trailers is getting “strong support”…”īipartisan legislation to repeal the 12-percent federal excise tax (FET) on the sale of heavy-duty trucks and trailers is getting “strong support” from American Trucking Associations ( ATA) and Modernize the Truck Fleet (MTF), a coalition of trucking industry stakeholders.

Fet tax on trailers