ATRI: Repeal of Truck Excise Tax Would Cut Costs

 

A new study from the American Transportation Research Institute (ATRI) shows that repealing the 12% federal truck excise tax would benefit the trucking industry, environment, and public safety. The tax, first introduced in 1917, currently applies to the sale of new trucks, trailers, and tractors that meet specific size and use requirements. Today, it’s adding significant costs for trucking companies and slowing the adoption of cleaner, safer vehicles.

According to the study, the tax adds over $20,000 to the cost of a typical new Class 8 truck. When factoring in a trailer or choosing a zero-emission model, the total tax burden can exceed $40,000 to $52,000 per vehicle. This expense discourages fleets from investing in newer, more efficient trucks and often pushes them toward buying used vehicles instead.

Lawmakers are taking notice. The Modern, Clean and Safe Trucks Act, reintroduced by Sens. Todd Young (R-Ind.) and Ben Cardin (D-Md.), and supported in the House by Rep. Doug LaMalfa (R-Calif.), seeks to eliminate the outdated tax. Proponents argue that it’s no longer aligned with national goals for cleaner air and safer highways.

Environmental benefits are a major focus of the ATRI report. Repealing the tax would speed up the turnover of older trucks and reduce carbon emissions. In fact, it could lower CO₂ emissions by 1.2 million metric tons per year, totaling nearly 66 million metric tons over a decade as cleaner diesel and zero-emission vehicles replace aging fleets.

Safety would also improve. Newer trucks come equipped with the latest advanced driver-assistance systems (ADAS). By making these trucks more affordable, the industry could prevent nearly 750 crashes annually, saving an estimated $13.5 billion in crash-related costs over 10 years.

ATRI also points out three major problems with the tax:

1. Buyers can easily avoid it by purchasing used equipment.

2. The revenue it generates is highly unpredictable and volatile.

3. The rules are complicated and create confusion for taxpayers.

“Truck prices clearly impact annual sales for our dealers and reduce our customers’ ability to add new equipment to their fleet,” said Jacqueline Gelb, President of the American Truck Dealers. “This report reinforces why repealing the tax is so important—it’s a win for safety, the environment, and operational efficiency.”

In short, repealing the truck excise tax would encourage the use of modern trucks, reduce emissions, and promote safety—without compromising the industry’s economic stability.

Source:

https://www.ttnews.com/articles/atri-fet-repeal-study