06/05/2026
A bipartisan group of U.S. senators has introduced legislation that would repeal the federal excise tax (FET) on new heavy-duty trucks and trailers, a tax that dates back to World War I.
The Modern, Clean, and Safe Trucks Act, introduced by Senators Todd Young and Angela Alsobrooks, seeks to eliminate the current 12% federal excise tax applied to the purchase of new commercial trucks and trailers.
Supporters of the bill argue that the tax adds between $15,000 and $30,000 to the cost of new equipment, making it more difficult for trucking companies, owner-operators, and small businesses to modernize their fleets.
Industry leaders say the tax can discourage the purchase of newer equipment because it applies only to new trucks and trailers, while used equipment remains exempt. They argue that removing the tax could encourage investment in newer vehicles equipped with the latest safety, fuel-efficiency, and emissions technologies.
The federal excise tax was originally established in 1917 and currently contributes funding to the Highway Trust Fund. Similar repeal efforts have been introduced in previous years but have not become law.
The proposed legislation must still move through the congressional process before any changes could take effect.
Source: U.S. Senate, American Trucking Associations (ATA)
