WASHINGTON — The American Trucking Associations is applauding congressional leaders for introducing legislation to repeal the antiquated federal excise tax on the purchase of new trucks and trailers.
“First implemented over a century ago to help finance America’s effort in World War I, the FET has become the largest excise tax on any product, adding $24,000 to the cost of each new clean-diesel tractor-trailer,” said Chris Spear, ATA president, CEO. “Keeping this antiquated tax on the books imposes an enormous hardship, particularly for the small fleets, family businesses, and independent truckers who make up the overwhelming majority of trucking. Removing this burden will allow motor carriers to replace their trucks with modern, safer, and cleaner equipment, which will in turn provide a boost to manufacturing jobs. Our industry is grateful to Reps. LaMalfa, Pappas, LaHood, Carbajal, and Miller for their leadership on this issue to improve highway safety, reduce emissions, and strengthen our economy.”
World War 1 Tax Still in Place
The 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 simply puts new trucks out of reach, and small businesses with less access to capital are disproportionately harmed,” the ATA said. “96% of U.S. trucking companies are small businesses operating 10 trucks or fewer. Keeping this tax on the books decreases orders for trucks and trailers, consequently reducing manufacturing jobs. It also delays the deployment of new trucks and trailers, which have greater environmental and safety benefits compared to older models still on the road.”
The Modern, Clean, and Safe Trucks Act of 2025 was introduced in the House by a bipartisan coalition of Congressmen led by Reps. Doug LaMalfa (R-California), Chris Pappas (D-New Hampshire), Darin LaHood (R-Illinois), Salud Carbajal (D-California), and Max Miller (R-Ohio).
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
