A new bill to eliminate the Federal excise tax (FET) on commercial trucks and trailers has been introduced to Congress.
The Modern, Clean, and Safe Trucks Act of 2025 was introduced in the House of Representatives Thursday by Reps. Doug LaMalfa (R-Calif.), Chris Pappas (D-N.H.), Darin LaHood (R-Ill.), Salud Carbajal (D-Calif.), and Max Miller (R-Ohio).
The bill follows a trucking industry discussion earlier in the week in the House Transportation and Infrastructure subcommittee in which FET was a point of contention. During that meeting, industry members shared the negative impact FET has on the sale of new vehicles and the downstream impact it has on industry emissions.
FET was first introduced in 1917 to finance World War I. The American Truck Dealers (ATD) have advocated for the removal of FET for many years and the American Trucking Associations has recently aggressively joined the fight.
FET adds a 12% to the cost of a new truck, which is an average of $22,000 per vehicle.
"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," says Chris Spear, ATA president and CEO. "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."
“The burdensome 12 percent Federal Excise Tax on the sale of new heavy-duty trucks and trailers is an outdated levy which drives up costs and slows the adoption of safer, more fuel-efficient vehicles,” adds Scott Pearson, ATD Chairman and President of Peterbilt of Atlanta. “This onerous tax adds approximately $20,000 to the price of a new diesel truck and $50,000 to the cost of a new electric truck. America’s truck dealers commend Reps. LaMalfa and Pappas for their leadership on this important issue, which will help motor carriers modernize their fleets and improve road safety.”
