Repealing the 12% federal excise tax (FET) on heavy trucks and trailers will help small businesses, lower costs for consumers, encourage EV adoption and strengthen America’s supply chains and shipping infrastructure.
The FET is the highest percentage excise tax in America and was established more than 100 years ago to pay for World War I.
WASHINGTON, DC - June 16, 2022, Congressman Chris Pappas (NH-01), a small business owner and Co-Chair of the bipartisan House Small Business Caucus, alongside Congressman Doug LaMalfa (CA-01), introduced the Modern, Clean, and Safe Trucks Act of 2022, bipartisan legislation to repeal the Federal Excise Tax (FET) on heavy trucks and trailers. This 12% FET is the highest percentage excise tax levied on any product in the country.
“As a small business owner, I’ve seen firsthand just how challenging it can be to operate a business, especially when costs rise,” said Congressman Chris Pappas. “This is a time when we must do all we can to lower costs for small businesses and consumers, and cutting the federal excise tax on heavy trucks and trailers will help America's Main Street economy grow, address supply chain challenges and shortages, and lower costs for essential items that families need like groceries and gas. Not only will cutting this tax help small businesses and ensure we can transport more goods across the country, but it will also facilitate the adoption of newer, safer, and greener trucks and reduce our dependency on foreign energy sources. I urge leaders in Congress to take up this bipartisan bill to provide immediate relief to small businesses and consumers alike.”
“The Federal excise tax has outlived its original purpose by more than a century. Between Sacramento and Washington, truckers have dozens of regulations on emissions and safety to follow. However, at the same time, our tax code disincentivizes them from purchasing the most up-to-date trucks, with the Federal excise tax adding as much as $30,000 by itself. With American producers and consumers shipping more than ever, we should drop the burdensome tax preventing our truck drivers from having the most modern, highest technology and safest equipment on the road,” said Congressman LaMalfa.
Peter McNamara, President of the New Hampshire Automobile Dealers Association, said: “Cutting this tax for New Hampshire small businesses will help entrepreneurs lower business costs, reduce prices that consumers pay, and get more energy-efficient, safer trucks onto the roads moving goods that families in New Hampshire need. We’re grateful for Congressman Pappas’s leadership in this space throughout his time in Congress, and we encourage members of Congress across the political spectrum to support this common-sense, bipartisan legislation.”
American Truck Dealers Chairman Scott McCandless said: “The American Truck Dealers (ATD) are very thankful for Congressman Pappas’ continued leadership to repeal the 12% FET on new trucks and help deploy cleaner, greener, and safer trucks, said Scott McCandless ATD Chairman and President of McCandless Truck Center. “Eliminating this outdated and punitive tax will spur turnover of our aging truck fleet and curb emissions. We must put an end to this tax that slows the deployment of new more environmentally friendly trucks.”
In 2020, Congressman Pappas led 54 lawmakers to call on Congressional leadership to support America’s trucking industry and their workers, including a suspension of the 12% federal excise tax (FET) on the purchase of new heavy-duty trucks and trailers. He reiterated that call last summer, urging Congress to repeal the tax to help small businesses recover and help America’s truck fleets replace older heavy-duty trucks with newer, safer, greener trucks.