Bipartisan Effort Seeks to Promote Cleaner and Safer Trucks, Lower Costs for the Industry
Rep. Doug LaMalfa (R-Calif.) has once again urged his colleagues to support his initiative to repeal the long-standing 12% federal excise tax on the purchase of new trucks. The congressman, a leading advocate for the repeal, emphasized that his legislation is aimed at relieving the financial burden on individuals seeking to buy new trucks.
Earlier this year, Rep. LaMalfa played a key role in introducing the Modern, Clean and Safe Trucks Act of 2023, a bipartisan bill designed to eliminate the World War I-era tax that has been imposed on new truck purchases.
Speaking before the House Transportation and Infrastructure Committee on October 18 during a hearing on the federal Highway Trust Fund, LaMalfa underscored the need to promote the adoption of newer, cleaner-burning, and safer trucks on the nation’s highways. He pointed out that the 12% federal excise tax on new vehicles serves as a disincentive for such upgrades.
LaMalfa further explained, “There’s a user-pay, user-benefit aspect to all the other different forms of taxation, and this one here is not a user-pay, user-benefit because it’s indeed hidden every time you buy one of those new vehicles if you choose to do so.” The federal Highway Trust Fund, which finances transportation projects, is primarily funded by revenue from fuel taxes.
The 12% excise tax, if repealed, has the potential to reduce the cost of new heavy trucks by $15,000 to $30,000. This change would not only provide upfront cost savings for truckers and small businesses but also lead to downstream benefits in the supply chain, ultimately resulting in cost savings for consumers.
Rep. Chris Pappas (D-N.H.), a co-sponsor of the legislation, highlighted that repealing the excise tax would support the adoption of newer, safer, and more environmentally friendly trucks, thus contributing to reduced greenhouse gas emissions and decreased dependence on foreign energy.
While the legislation has garnered significant support, a committee of jurisdiction in the House has yet to schedule a vote on the bill. Companion legislation has been introduced in the Senate, with Sens. Ben Cardin (D-Md.) and Todd Young (R-Ind.) as the bill’s sponsors.
Freight stakeholders, including the American Trucking Associations (ATA) and the Clean Freight Coalition, have been persistent in their efforts to call on Congress to repeal the federal excise tax. ATA President Chris Spear reiterated the importance of this initiative during the ATA’s 2023 Management Conference & Exhibition, advocating for its elimination as a means to reduce emissions and promote technology-neutral solutions.
In April, ATA Chairman Andrew Boyle emphasized the potential benefits of eliminating the federal excise tax during a Senate hearing, stating that it would reduce the cost of new technologies, allowing companies to invest in various clean and alternative fuel vehicles based on infrastructure availability. The drive to repeal the tax aligns with broader efforts to modernize and enhance the trucking industry while reducing its environmental footprint.