Washington — Today, the American Trucking Associations, American Truck Dealers, and Zero Emission Transportation Association sent a letter to Congressional leadership to repeal the Federal Excise Tax (FET) on heavy-duty commercial vehicles. The century-old tax is impeding the deployment of more environmentally friendly trucks on US roads.
The heavy-duty excise tax (FET), established in 1917 to defray WWI costs, adds 12% to the cost of a new truck, creating a significant disincentive for fleets to modernize. This cost-prohibitive tax can add more than $50,000 to the price of low- or zero-emission vehicles, impacting over 90% of U.S. motor carriers (operating six or fewer trucks). ATA President and CEO Chris Spear stated, “If Congress is serious about safety, the environment, and jobs, then repealing the FET should be front-burner. It’s time to shelve this WWI-era tax and start putting the best equipment on our roads.”
“The federal government wants heavy-duty trucks to be cleaner or emission-free but slaps a 12 percent tax on the newest, greenest trucks,” said Scott McCandless, ATD Chairman and President of McCandless Truck Center LLC of Aurora, Colo. “The federal excise tax harms American truckers and fleet operators by inflating the cost of heavy-duty trucks and limiting access to the many economic and public health benefits that come with transportation electrification,” said Albert Gore, executive director at ZETA. “Medium and heavy-duty trucks account for 24% of all transportation carbon emissions in the U.S. but represent only 4% of vehicles on the road. Repealing the counterproductive FET is a good place to start to reduce emissions.”
In the 117th Congress, Senators Todd Young (R-Ind.) and Ben Cardin (D-Md.) and Representatives Doug LaMalfa (R-Calif.) and Chris Pappas (D-N.H.) introduced the Modern, Clean, and Safe Trucks Act (H.R. 8116/S. 2435), bipartisan/bicameral legislation to repeal the tax.
The Zero Emission Transportation Association (ZETA) is a federal coalition advocating for 100% EV sales by 2030. ZETA is committed to enacting policies driving EV adoption, creating hundreds of thousands of jobs, securing American global EV manufacturing leadership, improving public health, and reducing carbon pollution.
Sources: https://www.trucking.org/news-insights/repeal-heavy-duty-excise-tax-and-get-cleaner-trucks-our-roads-transportation-groups#:~:text=World%20War%20I%20era%20tax,on%20heavy%2Dduty%20commercial%20vehicles
https://www.fleetowner.com/emissions-efficiency/article/21260587/trucking-groups-say-fet-impedes-fleets-zeroemission-adoption
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