House Bill Would Eliminate Excise Tax on Trucks, Trailers

Bipartisan legislation introduced in the House of Representatives on June 16 looks to repeal the 12 percent federal excise tax on heavy trucks and trailers.

The Modern, Clean and Safe Trucks Act is jointly sponsored by Reps. Chris Pappas (D-NH) and Doug LaMalfa (R-CA). The measure, which would alter Chapter 31 of the Internal Revenue Service Code, would abolish the tax on Class 8 trucks and trailers.

The federal excise tax — which only applies to new vehicle sales — is paid by the sellers of trucks but is commonly passed on to purchasers.

“With American producers and consumers shipping more than ever, we should drop the burdensome tax preventing our truck drivers from having the most modern, highest technology and safest equipment on the road,” LaMalfa stated in a release.

The federal excise tax adds can add more than $30,000 to the purchase price of some heavy trucks, according to LaMalfa.

In his own release, Pappas stated, “Not only will cutting this tax help small businesses and ensure we can transport more goods across the country, but it will also facilitate the adoption of newer, safer, and greener trucks and reduce our dependency on foreign energy sources.”