Bill would finally end federal excise tax on heavy trucks established nearly 110 years ago
A bill introduced in the U.S. Senate today seeks to help modernize the American trucking industry by repealing the federal excise tax.
On June 2, 2026, U.S. Senators Todd Young (R-Ind.) and Angela Alsobrooks (D-Md.) introduced the Modern, Clean, and Safe Trucks Act.
The bill would repeal the repeal the 12% federal excise tax (FET) on heavy trucks.
Lawmakers say that the FET adds to the cost of new trucking equipment by $15,000 to $30,000, making it “more expensive for trucking companies and independent operators to modernize their fleets.”
Further, because the tax does not apply to used equipment, it encourages fleets to keep older trucks and trailers on the road longer instead of upgrading to safer and more fuel-efficient vehicles.
The tax was implemented in 1917 to aid the U.S. government in funding World War I. Currently, the FET goes into the Highway Trust Fund to pay for infrastructure maintenance and expansion.
“Repealing this tax is a simple step that can help the American trucking industry and consumers,” said Senator Young. “This tax hurts the small businesses and independent truckers that are the core of American trucking, and it promotes the usage of older, less efficient trucks. Cutting the federal excise tax on heavy-duty trucks and trailers will lead to newer, safer, and cleaner trucks on America’s roads.”
“I am proud to partner with Senator Young in introducing the Modern, Clean, and Safe Trucks Act of 2026 to repeal the excise tax on heavy trucks and trailers,” said Senator Alsobrooks. “This outdated tax incentivizes using older, less efficient trucks. Our bill supports a modern trucking industry allowing for the adoption of newer trucks that are safer and more fuel-efficient. In doing so, the bill supports small businesses, independent truckers, and our environmental goals – it just makes sense.
“First implemented over a century ago to fund America’s involvement in World War I, the FET currently adds tens of thousands of dollars to the cost of all new heavy-duty trucks and trailers, regardless of whether they run on diesel, alternative fuels, or zero-emission powertrains,” said American Trucking Associations President & CEO Chris Spear. “Keeping this antiquated tax on the books imposes an enormous hardship—particularly for the family businesses and independent truckers who make up the overwhelming majority of trucking. Removing this burden will allow motor carriers to replace their trucks and trailers with modern, safer, and cleaner equipment, which will in turn provide a boost to U.S. manufacturing jobs. Our industry is grateful to Senators Young and Alsobrooks for their leadership on this issue to improve highway safety, reduce emissions, and strengthen our economy.”
Previous legislative attempts to repeal the FET have failed.