Legislation introduced in the U.S. Senate would end the 12% federal excise tax (FET) on new heavy-duty trucks and trailers.
The Modern, Clean, and Safe Trucks Act was introduced by Sen. Todd Young (R-Ind.) and Sen. Angela Alsobrooks (D-Md.). The senators said the FET creates financial barriers preventing fleets from adopting more fuel-efficient and safer trucks.
“The bill supports small businesses, independent truckers, and our environmental goals — it just makes sense,” said Alsobrooks.
“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,” said Young.
The tax was enacted by Congress in 1917 to help finance World War I. Supporters of the repeal said the tax is the highest percentage federal excise tax, amounting to a $6 billion annual burden on the trucking industry.
The tax adds $7,000 or more to the price of a standard trailer, at least $20,000 to the price of new clean-diesel trucks, and up to $50,000 to the price of zero-emission or alternative-fueled vehicles.
“The FET currently adds tens of thousands of dollars to the cost of all new heavy-duty trucks and trailers, regardless of whether they run on diesel, alternative fuels, or zero-emission powertrains,” said Chris Spear, president and CEO of the American Trucking Associations. “Keeping this antiquated tax on the books imposes an enormous hardship — particularly for the family businesses and independent truckers who make up the overwhelming majority of trucking.”
Companion legislation was introduced in the House during 2025.
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