A leading trucking industry advocacy group is praising congressional efforts to repeal a law it says is outdated and a burden on trucking companies.
The American Trucking Associations this week applauded congressional leaders for introducing legislation to repeal the antiquated federal excise tax on the purchase of new trucks and trailers.
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).
“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 American Trucking Associations President & CEO Chris Spear. “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.”
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, according to the ATA. In many cases, this additional expense puts new trucks out of reach, and small businesses with less access to capital are disproportionately harmed, said the ATA, which added that 96% of U.S. trucking companies are small businesses operating 10 trucks or fewer.
ATA said 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, said the ATA.
