David Bell, director of legislative affairs for the National Automobile Dealers Association (NADA) and American Truck Dealers (ATD), wrote Wednesday in ATD’s dealer blog that a decision regarding the suspension of federal excise tax on new heavy-duty trucks and trailers is likely to come in the next two weeks.
ATD has been focused on temporarily suspending the 12 percent FET on new trucks and trailers for years and, since April, the organization has been attempting to get a FET repeal through 2021 in the next coronavirus economic recovery legislation.
The ATD-led Modernize the Truck Fleet Coalition, along with 198 industry groups and the UAW, have advocated to temporarily suspend the 12 percent FET to help save jobs, boost the economy and modernize truck fleets by accelerating the purchase of new trucks with the latest environmental and safety technology.
Bell writes Class 8 truck sales are predicted to fall by 50 percent this year due to the coronavirus pandemic, though a recent American Trucking Associations (ATA) survey showed 60 percent of fleets are likely or very likely to purchase new trucks if the FET were suspended.
Last week, Rep. Chris Pappas (D-N.H.) and 54 House Democrats sent a letter to Democratic House of Representatives leaders urging them “to suspend the FET until the end of 2021 in upcoming coronavirus legislation as the best and fastest way to help save or restore trucking-related jobs and jumpstart the economic recovery of this vital sector.” The letter was signed by six prominent members of the House Ways and Means Committee, ATD says.
