WASHINGTON — Representatives from the American Trucking Associations (ATA) and others in the trucking industry are hailing congressional leaders for their efforts to repeal the federal excise tax on new truck purchases.
“The federal excise tax on purchases of trucks adds nearly $25,000 to the cost of new equipment, slowing deployment of safer and more environmentally friendly vehicles,” ATA President and CEO Chris Spear said. “This more than 100-year-old tax – first instituted to support American troops during the First World War, has far outlived its usefulness and now acts as an impediment to creating jobs, reducing emissions and improving highway safety.”
The new truck excise tax is currently the highest percentage excise tax — at 12% — levied on any product, according to the ATA.
The Modern Clean and Safe Trucks Act of 2023 was introduced in both the House and Senate by a bipartisan coalition of congressmen and senators, led by Reps. Doug LaMalfa, R-Calif., Chris Pappas, D-N.H., Earl Blumenauer, D-Ore., and Darin LaHood, R-Ill., in the House and Sens. Ben Cardin, D-Md., and Todd Young, I-Pa., in the Senate.
“The current federal excise tax has become a barrier to our progress in encouraging cleaner and greener technology,” Cardin said. “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.”
Albert Gore, executive director of the Zero Emission Transportation Association, said the tax harms American truckers and fleet operators by inflating the cost of heavy-duty trucks and limiting access to the many economic and public health benefits that come with transportation electrification.
“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,” Gore said. “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.”
Steve Bassett, immediate past chairman of American Truck Dealers and dealer principal of General Truck Sales in Muncie, Indiana, said: “Indiana truck dealers commend Senator Young for his leadership on this important legislation. Repealing the 106-year-old federal excise tax on heavy-duty trucks helps keep America competitive and is key to turning over an aging truck fleet.”
Spear thanked Cardin and his colleagues for their efforts on what he called a “critical issue.”
“We encourage Congress to take up and pass this legislation, an important step that will lead to both safer highways and decreased emissions,” Spear said.
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.
