The American Truck Dealers group applauded the letter U.S. Rep. Chris Pappas (D-NH) sent to Democratic House leaders calling for the repeal of the 12 percent federal excise tax (FET) on new heavy-duty trucks and trailers.
The letter, signed by 30 House Democrats, was sent to House Speaker Nancy Pelosi and other House Democratic leaders and urged them to repeal the FET in infrastructure legislation and replace it with a more equitable tax. The letter highlighted that the FET’s repeal would help America’s truck fleets replace their older heavy-duty trucks with newer, safer, greener trucks and provide a more consistent sour of revenue for the Highway Trust Fund.
“New heavy-duty trucks today have the latest emission control and safety technologies and are cleaner, safer, and more fuel efficient. With more than half of the Class 8 trucks on the road over 10 years old, repealing the FET would benefit the environment and improve highway safety by accelerating fleet turnover,” the letter said.
Trucking groups applauded the effort.
“We thank Rep. Pappas for his work to repeal the outdated FET in the New Hampshire tradition of environmental protection and commonsense tax policies,” said Peter McNamara, president of the New Hampshire Automobile Dealers Association, which also represents heavy-duty truck dealers in the state. “Repealing and replacing the FET will speed up the adoption of newer, cleaner, and safer trucks on the road by making them more affordable, support New Hampshire jobs related to truck retailing, and reduce the tax burden placed on many small businesses.”
First enacted by Congress in 1917, the tax is the highest excise tax on a percentage basis that Congress levies on a product and can add up to $20,000 to the price of a new heavy-duty truck. When added to recent regulatory costs, the FET makes buying new heavy-duty trucks difficult for small businesses and may prevent them from buying alternative-fueled trucks, which have higher up-front costs.