ATD Legislative Priorities

Congress imposes a 12% federal excise tax (FET) on the retail sale of most new heavy-duty trucks. The FET was first enacted in 1917 to help pay for World War I and is currently the highest excise tax on a percentage basis that Congress levies on any product. This tax depresses heavy-duty truck sales and delays the purchase of cleaner, safer and more fuel-efficient trucks. Moreover, truck manufacturing and assembly employment is significant in the U.S, and the FET impacts those jobs. 

Congress Should Repeal the FET in Comprehensive Transportation Infrastructure Legislation

ATD is urging Congress to repeal the FET, which would benefit the environment, spur new truck sales and protect the 1.3 million U.S. manufacturing, supplier, dealership and heavy-duty trucking and trailer industry jobs. Due to recent federal emissions, fuel economy and safety mandates, new trucks have made significant reductions in particulate matter (PM) and nitrogen oxide (NOx) emissions and safety systems. Since more than half of the Class 8 trucks on the road are over 10 years old, repealing the FET would incentivize the adoption of these modern trucks, thereby reaping the benefits of emerging green and safety technologies. 

Repeal of the FET is also a necessary step toward modernizing America's infrastructure. The FET has been the most inconsistent revenue source to the Highway Trust Fund (HTF) over the past 20 years. By repealing the FET and replacing the tax with a more consistent revenue source, Congress could provide long-term stability for the HTF. Congress should repeal the FET in upcoming infrastructure legislation to help protect U.S. jobs, replace older trucks with newer and greener trucks, and modernize America's truck fleet.

➢ Issue Brief: ATD Legislative Priorities - July 2021

➢ Issue Brief: “Modernize the Truck Fleet: Repeal the Federal Excise Tax on Heavy-Duty Trucks – S. 2435

➢ Bill Text: S. 2435 – the Modern, Clean, and Safe Trucks Act of 2021

➢ Infographic: Repeal the FET: Help Modernize America's Truck Fleet

➢ Video: It's Time to End the Federal Excise Tax on Commercial Trucks

➢ Testimony: American Truck Dealers to House Committee on Ways and Means Regarding FET Repeal – May 2021 (Senate Finance Testimony)

➢ Testimony: American Truck Dealers to Senate Committee on Environment and Public Works Regarding FET Repeal – April 2021
➢ Press Release: Modernize the Truck Fleet Coalition Supports Bipartisan Legislation to Repeal the FET; Seeks Inclusion in Infrastructure Bill – July 2021


FET Repeal in the 116th Congress

➢ Bill Text: H.R.2381 and S.1839 – the Modern, Clean, and Safe Trucks Act of 2019

Cosponsors of H.R. 2381 /S.1839

➢ Testimony: American Truck Dealers to House Committee on Ways and Means Regarding FET Repeal – January 2020
➢ Testimony: 63 State and Metro Automotive Executives to House Committee on Ways and Means Regarding FET Repeal - January 2020
Letter from Rep. Pappas (D - N.H.) and House Democrats Urging Ways and Means Committee Leadership to Consider FET Repeal - December 2019
➢ Letter from Sen. Manchin (D - W. Va.) Urging Senate Finance Committee Leadership to Consider FET Repeal - December 2019
➢ Industry Stakeholder Letter to Congressional Leadership on the Repeal of the FET on Heavy-Duty Trucks – July 2019
Reps. LaMalfa (R - Calif.) and Peterson (D-Minn.) 'Dear Colleague Letter' in support of H.R. 2381 - April 2019


2020 Pandemic Response Efforts

➢ Issue Brief: “Help the Economy Recover and Save Jobs in the Trucking Industry: Suspend the Federal Excise Tax on Heavy-Duty Trucks”
➢ Infographic: Include FET Suspension in an Economic Recovery Bill to Help Jump-Start the Economy and Protect American Jobs
Industry Stakeholder Letter to Congressional Leadership on Suspension of the FET on Heavy-Duty Trucks and Trailers – April 2020, updated July 2020
Summary of Employment in the United States That Was Supported by Class 8 Truck and Trailer Manufacturing as of January 2020 – July 2020
➢ Survey: ATA Survey Demonstrates That Nearly 60% of Fleets Were Somewhat or Very Likely to Buy Additional Trucks and/or Trailers if the FET Were Eliminated – May 2020
➢ Press Release: ATD Applauds Rep. Chris Pappas’ (D-N.H.) Letter to House Democratic Leadership Calling for FET Suspension – July 2020
➢ Letter: Rep. Pappas (D-N.H.) Leads Letter from 54 House Democrats to Leadership, Urging Inclusion of FET Suspension in Economic Recovery Legislation – July 2020
➢ Press Release: ATD and 116 Industry Stakeholders Call for Suspension of Federal Excise Tax on Heavy-Duty Trucks and Trailers – April 2020


Modernize the Truck Fleet (MTF) Coalition

MTF CoalitionModernize the Truck Fleet (MTF) is an industry coalition organized to build support for FET repeal and to identify viable funding options to replace this burdensome tax. A major barrier to modernizing the truck fleet is the current federal excise tax (FET) on heavy-duty trucks. As the highest excise tax on a percentage basis that Congress levies on a product, the FET can also depress new heavy-duty truck sales and delay the deployment of cleaner, safer and more fuel-efficient trucks. Congress should repeal the FET in upcoming infrastructure legislation to help protect U.S. jobs, replace older trucks with newer and greener trucks, and modernize America's truck fleet.

Learn more: 

➢ Issue Brief: “Modernize the Truck Fleet: Repeal the Federal Excise Tax on Heavy-Duty Trucks – S. 2435
➢ Issue Brief: Modernize the Truck Fleet; Deploy Clean Trucks Today
➢ Issue Brief: Modernize the Truck Fleet, Deploy Newer Safer Trucks on the Highways Today

➢ Infographic: Repeal the FET: Help Modernize America's Truck Fleet
➢ Analysis: Summary of Employment in the United States That Was Supported by Class 8 Truck and Trailer Manufacturing as of January 2020 – July 2020
➢ Survey: ATA Survey Demonstrates That Nearly 60% of Fleets Were Somewhat or Very Likely to Buy Additional Trucks and/or Trailers if the FET Were Eliminated – May 2020
➢ Infographic: Timeline Highlighting Important Developments in the Effort to Suspend the FET

➢ Letter: Industry Stakeholder Letter to Congressional Leadership on Suspension of the FET on Heavy-Duty Trucks and Trailers – April 2020, updated July 2020
➢ Letter: UAW Letter to Democratic Congressional Leadership on Suspension of the FET on Heavy-Duty Trucks and Trailers – June 2020
➢ Testimony: Modernize the Truck Fleet/ATD to House Committee on Ways and Means Regarding FET Suspension – June 2020
➢ Testimony: Modernize the Truck Fleet/ATD to Senate Committee on Commerce, Science, and Transportation Regarding FET Suspension – June 2020
➢ Letter: Industry Stakeholders Send Letter to Congressional Leadership to Repeal the FET – July 2019
➢ Press Release: Momentum Builds as More Organizations Unite Behind Federal Excise Tax (FET) Repeal
➢ Press Release: ‘Modernize the Truck Fleet’ Coalition Launches
➢ Press Release: ‘Modernize the Truck Fleet’ Coalition Applauds New Bipartisan Legislation to Repeal the Federal Excise Tax on Heavy-Duty Trucks and Trailers
➢ Press Release: Modernize the Truck Fleet Coalition Rallies Support for H.R. 2381/S. 1839 to Repeal the FET
Join the ‘Modernize the Truck Fleet’ Coalition
➢  'Modernize the Truck Fleet’ Coalition Members


Greenhouse Gas Emissions (Phase 2):

Greenhouse Gas (GHG) Emissions and Fuel Efficiency Standards for Medium and Heavy-Duty Engines and Vehicles

Highway Trust Fund

Read ATD's testimony regarding the Highway Trust Fund: U.S. House Testimony | U.S. Senate Testimony