A bipartisan bill sponsored on March 8 by U.S. Sen. Todd Young (R-IN) would repeal the 12-percent federal excise tax (FET) on certain new heavy trucks, tractors, and trailers.
“It’s time to repeal this outdated and onerous tax on our Hoosier truckers,” Sen. Young said. “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 text of the Modern, Clean, and Safe Trucks Act of 2023, S. 694, which Sen. Young introduced alongside original cosponsor U.S. Sen. Ben Cardin (D-MD), states that, coupled with new regulatory mandates, the current FET significantly increases the cost of these new vehicles and discourages the replacement of older, less environmentally clean and less fuel economical vehicles.
Currently, according to information provided by Sen. Young’s staff, the 12-percent FET is the highest percentage excise tax levied on any product, yet remains an unpredictable and minimal source of revenue for the Highway Trust Fund. The FET also discourages private investment to modernize America’s truck fleet with cleaner and safer trucks and trailers, the information says.
“I am proud to support tax policy that enables Maryland manufacturers to innovate and deploy cleaner and safer technologies in our trucking industry,” said Sen. Cardin. “Our legislation will spur growth and competitiveness while making our roads safer and less polluted.”
S. 694 has been endorsed by the American Trucking Associations, American Truck Dealers, and the Zero Emission Transportation Association.