The trucking industry is advocating for the repeal of outdated regulations, such as the Federal Excise Tax (FET) on heavy-duty vehicles, to accelerate the adoption of newer, cleaner, and safer trucks. Removing this tax will encourage fleet modernization, leading to significant environmental and safety benefits.

Key Points:

1. Outdated Federal Excise Tax (FET):
   • The FET, first introduced in 1917, imposes a 12% tax on the sale of new heavy-duty trucks and trailers.
   • It is the highest percentage-based tax levied by the federal government, significantly increasing the cost of acquiring new vehicles.
2. Impact on Fleet Modernization:
   • The high cost of new trucks deters businesses from replacing older vehicles with cleaner and safer models.
   • Repealing the FET would reduce financial barriers, enabling fleets to invest in modern trucks equipped with advanced safety features and lower emissions technology.
3. Environmental and Safety Benefits:
   • New trucks are substantially more fuel-efficient and emit far fewer pollutants than older models.
   • Increased adoption of advanced safety technologies in newer trucks will reduce accidents and enhance road safety.
4. Support for the Modern Clean and Safe Trucks Act of 2023 (H.R. 1440, S. 694):
   • This bipartisan legislation seeks to repeal the 12% FET on heavy-duty vehicles, promoting the turnover of aging fleets.
   • By cosponsoring H.R. 1440 and S. 694, lawmakers can support the trucking industry’s transition to a cleaner, safer future while fostering economic growth.

Economic Implications:

• Reduced Operating Costs: Lower upfront costs for new trucks will save businesses money in the long term through improved fuel efficiency and reduced maintenance expenses.
• Job Creation: Increased demand for newer vehicles will boost manufacturing jobs in the trucking and automotive sectors.
• Stimulated Economy: Accelerating fleet turnover will contribute to economic growth by promoting investments in cleaner technology.

Next Steps:

• Advocacy: Encourage policymakers to cosponsor the Modern Clean and Safe Trucks Act of 2023 to repeal the FET.
• Education: Highlight the environmental, safety, and economic benefits of transitioning to newer trucks.
• Industry Collaboration: Partner with stakeholders across the trucking sector to build a unified voice for this legislative priority.

Repealing the Federal Excise Tax is a critical step in modernizing the trucking industry, improving environmental and safety outcomes, and driving economic progress.

Modern Clean and Safe Trucks Act of 2023 (H.R. 1440, S. 694)

The Modern, Clean, and Safe Trucks Act of 2023 is bipartisan legislation introduced in both the House of Representatives (H.R. 1440) and the Senate (S. 694) in March 2023. Its primary objective is to repeal the 12% federal excise tax (FET) on the sale of new heavy-duty trucks and trailers.

Background:

The FET was first implemented in 1917 to help finance World War I. Over time, it has become the highest percentage excise tax levied on any product, significantly increasing the cost of new heavy-duty trucks and trailers. This tax has been identified as a barrier to the adoption of newer, cleaner, and safer vehicles within the trucking industry.

Key Provisions:

• Repeal of the Federal Excise Tax: The Act proposes the elimination of the 12% FET on heavy-duty trucks and trailers, aiming to reduce the financial burden on purchasers and encourage the modernization of trucking fleets. Congress.gov

Legislative Support:

• Senate: Introduced by Senators Todd Young (R-IN) and Ben Cardin (D-MD), the bill has garnered bipartisan support. Cardin Senate
• House of Representatives: Introduced by Representatives Doug LaMalfa (R-CA) and Chris Pappas (D-NH), with additional original cosponsors including Representatives Earl Blumenauer (D-OR) and Darin LaHood (R-IL). NADA

Rationale and Support:

Advocates argue that repealing the FET will facilitate the adoption of trucks equipped with the latest safety and environmental technologies, thereby reducing emissions and enhancing road safety. Organizations such as the American Trucking Associations and the American Truck Dealers have expressed strong support for the legislation, emphasizing its potential to modernize the nation’s truck fleet and promote environmental sustainability.

Current Status:

As of November 2024, the Modern, Clean, and Safe Trucks Act of 2023 remains under consideration in Congress. Stakeholders continue to advocate for its passage, highlighting the benefits of removing the FET in terms of economic growth, environmental protection, and public safety.