NTEA supports FET repeal legislation
FARMINGTON HILLS, Mich – (Trailer Technician) — NTEA – The Association for the Work Truck Industry announced its support for legislation to repeal the 12% Federal Excise Tax (FET) on heavy trucks and trailers. H.R. 1440 was introduced by U.S. Representatives Doug LaMalfa (R-CA), Chris Pappas (D-NH), Darin LaHood (R-IL) and Earl Blumenauer (D-OR). A companion bill, S. 694, was introduced by U.S. Senators Ben Cardin (D-MD) and Todd Young (R-IN).
“NTEA commends these congressional leaders for introducing legislation to repeal this burdensome and complex tax which can inhibit fleets from replacing older and less fuel-efficient heavy trucks with safer, environmentally friendly new trucks,” said Steve Carey, NTEA president & CEO.
NTEA continues to call on Congress to repeal FET as a part of any upcoming infrastructure legislation. Eliminating this tax would provide Congress the opportunity to create long-term stability in the Highway Trust Fund by replacing FET with a funding source not based on annual truck sales.
The 12% FET placed on heavy trucks, truck chassis, bodies and trailers is the highest excise tax charged on any product. It was first levied in 1917 to help pay for World War I. Today it can add thousands of dollars to the price of a new truck and is deposited into the federal Highway Trust Fund. The newly introduced legislation proposes to eliminate the tax more than 100 years after it was created.
“On one hand, regulators want operators out of older trucks, but on the other hand, this tax penalizes them for trying to update their equipment. Repealing the 12% Federal excise tax on heavy trucks and trailers will help all businesses reduce costs, address supply chain challenges, and lower costs for essential goods for families, especially in rural areas,” said Congressman LaMalfa. “The Federal excise tax has outlived its original purpose by more than a century. Truckers are an essential cornerstone in our supply chain, yet the tax code disincentivizes them from purchasing the most up-to-date equipment. I’m urging Congress to support this common-sense, bipartisan bill, and drop the burdensome tax preventing our truck drivers from having the most modern, highest technology and safest equipment on the road.”
“As a small business owner, I know just how challenging it can be to operate a business, and every potential saving we can deliver makes a difference,” said Congressman Pappas. “Cutting the federal excise tax on heavy trucks and trailers will help America’s Main Street economy grow, address supply chain challenges and shortages, and lower costs for essential items that families need, including groceries and gas. This legislation will also support the adoption of newer, safer, and cleaner trucks that reduce our dependence on foreign energy. I urge leaders in Congress to take up our bipartisan bill, and act to provide immediate relief to small businesses and consumers alike.”
For more information, visit ntea.com/repealfet.
ABOUT NTEA
Established in 1964, NTEA – The Association for the Work Truck Industry, a 501(c)(6) organization, represents more than 2,000 companies that manufacture, distribute, install, sell and repair commercial trucks, truck bodies, truck equipment, trailers and accessories. Buyers of work trucks and the major commercial truck chassis manufacturers also belong to NTEA. The Association provides in-depth technical information, education, and member programs and services, and produces Work Truck Week®, Green Truck Summit, Commercial Vehicle Upfitting Summit, and Executive Leadership Summit. The Association maintains its administrative headquarters in suburban Detroit and government relations offices in Washington, DC, and Ottawa, Ontario, Canada.