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Senators Push Repeal of Federal Excise Tax
Freight Groups Oppose World War I-Era Levy on Trucks, Tractors and Trailers
Key Takeaways:
- Senators introduced bipartisan legislation to repeal the 12% federal excise tax on new heavy-duty trucks tractors and trailers.
- Supporters say the tax increases costs and discourages fleets from adopting newer safer and more fuel-efficient equipment.
- Industry groups argue repeal would speed fleet modernization while aiding safety environmental and workforce goals.
Senior senators recently unveiled bipartisan legislation designed to repeal a World War I-era federal excise tax on new heavy-duty trucks, tractors and trailers, renewing a long-standing push from the trucking industry to eliminate the 12% levy.
Sen. Todd Young (R-Ind.) on June 2 introduced the Modern, Clean and Safe Trucks Act, which would repeal the federal excise tax on certain commercial vehicles. The measure awaits consideration in committee. Similar proposals in recent sessions of Congress have not advanced to the president’s desk for enactment.
The federal excise tax on heavy trucks hurts the small businesses and independent truckers that are the core of American trucking, and it promotes usage of older, less efficient trucks. Cutting this tax will lead to newer and cleaner trucks on our roads.
https://t.co/A2hJHv9nwT — Senator Todd Young (@SenToddYoung) June 2, 2026
Supporters argue the tax increases the cost of new trucks by as much as $15,000 to $30,000, discouraging fleet turnover and slowing adoption of newer, safer and more fuel-efficient equipment. Since the FET applies to new purchases, opponents of the existing tax argue it incentivizes carriers to keep older, less fuel-efficient vehicles on the road longer.
“This tax hurts the small businesses and independent truckers that are the core of American trucking, and it promotes the usage of older, less-efficient trucks. Cutting the federal excise tax on heavy-duty trucks and trailers will lead to newer, safer and cleaner trucks on America’s roads,” said Young, a senior member of the commercial transportation panel.
“This outdated tax incentivizes using older, less-efficient trucks. Our bill supports a modern trucking industry allowing for the adoption of newer trucks that are safer and more fuel-efficient,” said Sen. Angela Alsobrooks (D-Md.), a co-sponsor, adding the bill would accelerate the transition to newer equipment while aligning with environmental and efficiency goals.
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Alsobrooks
A companion measure was introduced in the House last year and also remains pending. Rep. Chris Pappas (D-N.H.), a co-sponsor of that bill, has emphasized the proposal’s bipartisan support and its potential to strengthen supply chains while lowering costs for small businesses.
“Cutting the federal excise tax on heavy-duty trucks and trailers will help America’s Main Street economy grow and strengthen our supply chains, while also supporting the adoption of newer, safer and cleaner trucks,” he said.
Industry groups welcomed the Senate bill, reiterating long-standing opposition to the tax.
American Trucking Associations has argued the FET, first enacted to help fund World War I, adds significant costs to new vehicles regardless of powertrain and places a burden on smaller carriers. Eliminating the tax would allow fleets to modernize equipment more quickly, ATA President Chris Spear said, supporting safety, environmental and workforce goals.
“Removing this burden,” Spear emphasized, “will allow motor carriers to replace their trucks and trailers with modern, safer and cleaner equipment, which will in turn provide a boost to U.S. manufacturing jobs.”
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. In many cases, this exorbitant expense puts new trucks out of reach,… pic.twitter.com/QP4BMh2faF — American Trucking (@TRUCKINGdotORG) June 2, 2026
American Truck Dealers Chairman Kevin Holmes, president and CEO of Advantage Truck Group, said in a statement that accompanied the bill’s introduction: “The 12% federal excise tax is outdated, inefficient and punitive — to both dealers and fleets, routinely adding over $20,000 to the price of a new heavy-duty commercial motor vehicle.
“As we face challenges from tariff volatility and the ever-changing regulatory landscape, it is critical to reassess burdensome tax policies like the FET. Eliminating these barriers to fleet turnover will promote economic growth and lead to cleaner, safer trucks on America’s streets and highways.”
