ATA Renews Campaign to Scrap 12% Federal Truck Excise Tax

Key Details The American Trucking Associations is intensifying efforts to eliminate the federal excise tax on new heavy-duty trucks and trailers as Congress prepares to consider surface transportation legislation. The bipartisan Modern, Clean, and Safe Trucks Act would repeal the 12% tax, which can add $15,000 to $30,000 to the purchase price of new equipment. ATA Vice President of State and Tax Policy David Bauer emphasized the urgency, calling the World War I-era levy outdated and discriminatory toward trucking. Why It Matters The excise tax applies only to new trucks, not used equipment, discouraging fleet modernization and keeping older, less efficient vehicles on roads longer. The average heavy-duty truck in operation is over a decade old, according to bill sponsors. Newer trucks offer advanced safety features and cleaner emissions technology that benefit both operators and the environment. Business Impact ATA President Chris Spear noted the tax creates disproportionate hardship for small fleets, family-owned businesses, and independent owner-operators. Industry advocates argue that removing this burden will help carriers replace aging equipment with modern, safer vehicles while reducing operating costs. Supporters highlight potential benefits for supply chain resilience and economic growth across America's transportation sector.