Young, Cardin introduce bill to repeal outdated federal excise tax on heavy trucks and trailers

Today, the 12% FET is the highest percentage excise tax levied on any product, and at the same time, it is an unpredictable and minimal source of revenue for the Highway Trust Fund. The tax also discourages private investment to modernize America’s truck fleet with cleaner and safer trucks and trailers. 

“It’s time to repeal this outdated and onerous tax on our Hoosier truckers,” said Senator Young. “Our bipartisan bill will open the floodgates to investment in safer and cleaner trucks and trailers that will benefit our economy and the environment.”

“The current federal excise tax has become a barrier to our progress in encouraging cleaner and greener technology,” said Senator Cardin. “I am proud to support tax policy that enables Maryland manufacturers to innovate and deploy cleaner and safer technologies in our trucking industry. Our legislation will spur growth and competitiveness while making our roads safer and less polluted.” 

The bill is supported by the American Trucking Associations (ATA), American Truck Dealers (ATD), and Zero Emission Transportation Association (ZETA). 

“By moving to repeal this antiquated tax, Senators Cardin and Young are showing that they’re serious about improving highway safety, reducing emissions, and creating jobs,” said ATA President and CEO Chris Spear. “Eliminating it will help us win the 21st Century by getting rid of a barrier to putting safer, more environmentally friendly trucks on the road.” 

“The federal government wants heavy-duty trucks to be cleaner or emission free, but slaps a 12 percent tax on the newest, greenest trucks. If the goal is to reduce emissions, repealing the counterproductive FET is a good place to start,” said Scott McCandless, ATD Chairman and President of McCandless Truck Center LLC of Aurora, Colo.

Albert Gore, executive director at ZETA, said, "Medium and heavy-duty trucks account for 24% of all transportation carbon emissions in the United States but represent only 4% of vehicles on the road. It is time to accelerate our movement towards modernized transportation fleets, and we must enable our nation's fleet operators and truckers to join in this effort.”