Transportation Groups Urge Congress to Repeal Heavy-Duty Excise Tax, Get Cleaner Trucks on Our Roads

A group of transportation and trucking stakeholders calls on Congress to repeal the century-old Federal Excise Tax (FET) on heavy-duty commercial vehicles. The letter, sent to Congressional leadership by the American Trucking Associations, American Truck Dealers, and Zero Emission Transportation Association, states that the FET is impeding the deployment of cleaner, more environmentally friendly trucks.

The heavy-duty excise tax (FET) was established in 1917 to defray WWI costs and today adds 12% to the cost of a new truck, creating a disincentive to modernize equipment and replace older tractors. It can add >$50,000 to the price of a low- or zero-emission vehicle, making these investments cost-prohibitive for smaller fleets (over 90% have six or fewer trucks).

ATA President and CEO Chris Spear: “If Congress is serious about safety, the environment, and jobs, repealing the FET should be front-burner. It’s time to shelve this World War I era tax and start putting the best equipment on our roads.”

Scott McCandless, ATD Chairman and President of McCandless Truck Center LLC of Aurora, Colo.: “The federal government wants heavy-duty trucks to be cleaner or emission-free but slaps a 12 percent tax on the newest, greenest trucks. If the goal is to reduce emissions, repealing the counterproductive FET is a good place to start.”

“The federal excise tax harms American truckers and fleet operators,” said Albert Gore, executive director at ZETA, “inflating the cost of heavy-duty trucks and limiting access to economic and public health benefits that come with transportation electrification.

Medium and heavy-duty trucks account for 24% of all transportation carbon emissions in the US, yet only 4% of vehicles are on the road. We must enable our nation’s fleet operators and truckers to join the effort to accelerate our movement towards modernized transportation fleets.”

In the 117th Congress, U.S. Sens. Todd Young (R-Ind.), Ben Cardin (D-Md.), and Reps. Doug LaMalfa (R-Calif.) and Chris Pappas (D-N.H.) introduced the Modern, Clean, and Safe Trucks Act (H.R. 8116/S. 2435), bipartisan and bicameral legislation to repeal a tax.