Senators Todd Young (R-IN) and Angela Alsobrooks (D-MD) have introduced the Modern, Clean, and Safe Trucks Act, legislation to repeal the antiquated federal excise tax (FET) on the purchase of new trucks and trailers.

The move has been met with broad support from America’s trucking industry, which has been fighting for the elimination of the FET for more than a decade

“First implemented over a century ago to fund America’s involvement in World War I, the FET currently adds tens of thousands of dollars to the cost of all new heavy-duty trucks and trailers.”

“First implemented over a century ago to fund America’s involvement in World War I, the FET currently adds tens of thousands of dollars to the cost of all new heavy-duty trucks and trailers, regardless of whether they run on diesel, alternative fuels, or zero-emission powertrains,” said ATA President & CEO Chris Spear. “Keeping this antiquated tax on the books imposes an enormous hardship—particularly for the family businesses and independent truckers who make up the overwhelming majority of trucking. Removing this burden will allow motor carriers to replace their trucks and trailers with modern, safer, and cleaner equipment, which will provide a boost to U.S. manufacturing jobs.”

The antiquated FET began in 1917 to help finance World War I. Today, it is the highest percentage federal excise tax—at 12 percent—levied on any product, amounting to a $6 billion annual burden on the trucking industry. 

In many cases, this exorbitant additional expense puts new trucks out of reach, and small businesses with less access to capital are disproportionately harmed.  Fleets operating 10 trucks or fewer comprise 96% of U.S. trucking companies. 

Industry leaders note that this tax delays orders for trucks and trailers, thereby reducing manufacturing jobs and decreasing highway safety by limiting the number of trucks on the road that utilize newer technology and equipment advances. Most experts agree that newer trucks also afford greater environmental and safety benefits compared to older models still on the road. 

A House companion to the Modern, Clean, and Safe Trucks Act was introduced last year by a bipartisan coalition of congressmen.