The National Truck Equipment Association (NTEA) commends Senators Todd Young (R-IN) and Ben Cardin (D-MD) for introducing p. 2435, the Modern, Clean, and Safe Trucks Act of 2021. This bipartisan The bill would increase the 12% federal excise tax (FET) on heavy trucks and trailers.
NTEA calls on Congress to repeal the FET as part of upcoming infrastructure legislation. The abolition of the FET would allow Congress to stabilize the Highway Trust Fund over the long term by replacing the FET with a source of funding that is not based on annual truck sales.
“NTEA has long been committed to the elimination of burdensome and complex taxes that are more than 100 years old and is a founding member of the Modernize the Truck Fleet coalition,” said Steve Carey, President and CEO of NTEA. “We believe the abolition will help fleets replace older and less fuel-efficient heavy trucks with safer, more environmentally friendly new trucks.”
The repeal of the FET would allow buyers to more easily incorporate cleaner, safer vehicles into their fleet and would help protect US jobs. In addition, the repeal would pave the way for better alternative financing mechanisms for the repair and maintenance of motorways.
Senator Young said, “Our bipartisan bill will open the floodgates to investing in safer and cleaner trucks and trailers that will benefit our economy and the environment.”
The FET, originally formed in 1917 to pay for World War I, is the highest percentage excise tax levied by the federal government. Adding the tax to the cost of the latest heavy truck emissions technology is forcing many small businesses to postpone buying a new vehicle.
“Our tax policy is one of the most effective ways Congress can promote cleaner, greener technologies. The current federal excise tax has become an obstacle to progress, ”says Senator Cardin.
For more information on FET, including a copy of p. 2435, the Modern, Clean, and Safe Trucks Act of 2021, please visit ntea.com/repealfet.