Trucking Groups Implore Congress to Repeal Excise Tax

A coalition of transportation groups is asking Congress to nullify the Federal Excise Tax (FET) on heavy-duty commercial vehicles. 

The tax, established in 1917 to offset World War I costs, adds 12 percent to the cost of a new truck, according to a release, which the groups say is inhibiting fleets from upgrading to low- or zero-emission vehicles. 

The group’s letter to the majority and minority leaders of the House and Senate was signed by American Truck Dealers, American Trucking Associations and the Zero Emission Transportation Association. 

“The FET increases costs for new vehicle purchasers of all fleet sizes and makes it more difficult for the transportation industry to improve highway safety and achieve new, demanding fuel economy and emissions standards,” reads the letter. “Repealing the FET will spur investments in cleaner and more fuel-efficient trucks to turnover America’s aging truck fleet, support American workers in manufacturing and sales, benefit small businesses, and improve highway safety.” 

The release notes that a bill to repeal the tax — the Modern, Clean, and Safe Trucks Act of 2022 — was introduced last year but never made it out of committee.