Bipartisan Bill Targets Century-Old Truck Excise Tax for Repeal

Key Details Senators Todd Young (R-Ind.) and Angela Alsobrooks (D-Md.) introduced the Modern, Clean, and Safe Trucks Act on June 2, 2026. The legislation would repeal the 12% federal excise tax (FET) on heavy trucks, a levy implemented in 1917 to fund World War I efforts. Why It Matters The FET currently adds $15,000 to $30,000 to the cost of new truck equipment, making fleet modernization expensive for trucking companies and owner-operators. Because the tax does not apply to used trucks, it creates a perverse incentive for fleets to keep aging, less efficient vehicles on the road longer rather than upgrade to newer models. The Impact Removing this outdated tax would enable operators to purchase safer, more fuel-efficient trucks regardless of their fuel type - diesel, alternative fuels, or zero-emission powertrains. This modernization directly supports highway safety and environmental goals while strengthening American manufacturing jobs. Next Steps Previous repeal attempts have failed in Congress. However, bipartisan sponsorship suggests improved prospects for this legislation. The bill represents industry consensus that the century-old tax no longer serves its original purpose and actively harms the trucking sector's ability to modernize.