Bill seeks to eliminate 12% tax on heavy-duty trucks put into place over 100 years ago
A bill reintroduced in the U.S. House of Representatives this week aims to support truckers by removing a tax on the sale of heavy-duty trucks.
On March 27, 2025, Reps. Doug LaMalfa, Chris Pappas, Darin LaHood, Salud Carbajal, and Max Miller reintroduced the Modern, Clean, and Safe Trucks Act of 2025. The bill would repeal the 12% federal excise tax (FET) currently imposed on heavy-duty vehicles.
The FET was established in 1917 to aid the U.S. government in funding World War I.
LaMalfa calls the FET “the highest excise tax levied on any product in the country,” and says that it adds $15,000 to $30,000 the cost of new heavy trucks, trailers, semitrailer chassis, and tractors for highway use. LaMalfa also says that the the FET encourages the sale of used trucks because these vehicles are not subject to the 12% tax.
“For over a century, the federal excise tax on heavy-duty trucks has gone from a temporary wartime measure to fund World War I, to an outdated tax that punishes truck buyers,” said Rep. LaMalfa. “This is the highest percentage-based tax Congress imposes on any product, yet it fails to be a reliable source of funding for the Highway Trust Fund. This tax forces buyers to stick with older, less efficient models and makes it harder for truckers to modernize their rigs, holding back the trucking industry from updating. Let’s repeal this outdated tax and support the men and women who keep America moving.”
The American Trucking Associations (ATA) endorses the repeal of the FET, which they say adds “a $6 billion annual burden on the trucking industry.”
“First implemented over a century ago to help finance America’s effort in World War I, the FET has become the largest excise tax on any product, adding $24,000 to the cost of each new clean-diesel tractor-trailer,” said American Trucking Associations President & CEO Chris Spear. “Keeping this antiquated tax on the books imposes an enormous hardship, particularly for the small fleets, family businesses, and independent truckers who make up the overwhelming majority of trucking. Removing this burden will allow motor carriers to replace their trucks with modern, safer, and cleaner equipment, which will in turn provide a boost to manufacturing jobs. Our industry is grateful to Reps. LaMalfa, Pappas, LaHood, Carbajal, and Miller for their leadership on this issue to improve highway safety, reduce emissions, and strengthen our economy.”