WESTERVILLE, Ohio — Trucking is in Ohio’s blood. In the Buckeye state, our industry is home to more than 42,000 motor carriers and trucking fleets, primarily small businesses that employ more than 360,000 Ohioans. We are also home to two major heavy-duty truck manufacturers, Navistar in Springfield and Paccar in Chillicothe, who are building the latest models of high-tech, energy-efficient trucks. Unfortunately, a major barrier stands between our next generation fleet and the businesses that seek to buy them. The heavy-duty federal excise tax (FET) is an archaic levy that was established during World War I to defray mounting costs and support military efforts abroad. News flash: The war is over, but the FET lives on.
More than a century later, the FET is the highest percentage excise tax — at 12% — levied on any product. It is added to the cost of every heavy-duty truck and trailer and has been a significant burden on operators and the smaller trucking fleets that make up the overwhelming majority of the trucking industry.
On average, the FET adds nearly $25,000 to the price of new equipment, which is cost-prohibitive to most owners. For a new, low-emission truck, the cost skyrockets by nearly $50,000. This is a deal-breaker for most owners when you consider that 90% of U.S. motor carriers are small businesses that operate six or fewer trucks. The trucking industry has been doing its part for the environment, working closely with the U.S. Environmental Protection Agency to lower emissions and improve fuel efficiency.
Nevertheless, the FET puts the newest, cleaner trucks out of reach for much of the industry, and as a result, too many are stuck operating trucks that are older, dirtier and less safe.
Around 43% of Class 8 trucks currently operating nationwide are model year 2010 or older and send far more emissions into the air than today’s clean vehicles. If those pre-2010 trucks were replaced with more modern trucks, emissions would decrease by 83% overnight.
Fortunately, Congress has heard our frustrations and has introduced the Modern, Clean, and Safe Trucks Act of 2023, a broad, bipartisan bill that would finally repeal the FET. If passed, Navistar and Paccar would see a nearly instant rise in demand for their respective trucking lines, a shot in the arm for Ohio’s manufacturing base. Our outdated trucks would be retired for cleaner, more efficient models.
And all Ohioans would benefit from increased highway safety, with new trucks transporting goods with the latest technologies, including automatic braking, stability control, lane departure warning, blind spot monitoring, and fatigue alert systems.
In this dismal era of gridlock in Washington, the Safe Trucks Act is a no-brainer that is supported by both parties. It’s good for the environment, good for highway safety and good for business. Sen. Sherrod Brown has long been an environmental champion and a supporter of small businesses. His voice carries extra weight in Washington on this important issue as a member of the Senate Finance Committee. On behalf of Ohio’s truckers, we hope he will support this critical legislation.
Thomas A. Balzer is president and CEO of the Ohio Trucking Association.
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