ATD Legislative Priorities

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Support Repeal of the Federal Excise Tax (FET) on New Heavy-Duty Trucks (H.R. 2946)

During consideration of a potential infrastructure bill, Congress should revisit the 12 percent federal excise tax (FET) imposed on the sale of most new heavy-duty trucks. This tax adds between $12,000 to $22,000 to the price of a new heavy-duty truck. The FET depresses new heavy-duty truck sales and delays the deployment of cleaner, safer and more fuel-efficient trucks. This burdensome tax is in addition to the nearly $40,000 in recent federal emissions and fuel-economy mandates that will make it harder for small businesses to afford a new heavy-duty truck. Congress should repeal this harmful and outdated tax (H.R. 2946) to stimulate the sale of new heavy-duty trucks that would directly benefit the 7.3 million Americans employed in the U.S. trucking industry. Representatives should cosponsor H.R. 2946 to spur new-truck sales and promote the entry of cleaner and safer trucks to modernize the trucking fleet. 

Bill Text for H.R.2946 - Heavy Truck, Tractor, and Trailer Retail Federal Excise Tax Repeal Act of 2017
Cosponsors for H.R. 2946
Dear Colleague Letter for H.R. 2946 
Press Release on Support for H.R. 2946
Transport Topics: Time is Right to Repeal Federal Excise Tax by Steve Parker, ATD Chairman

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Support Like-Kind Exchange (LKE) Transition Rules for Personal Property

The recently enacted tax reform bill (H.R. 1) repealed the use of like-kind exchanges (LKE) for personal property. Truck dealers and their customers used LKEs to facilitate fleet turnover and purchase new trucks by deferring the recognition of gain on the exchange of existing business assets (i.e. older leased trucks) when replacing them with new products (i.e. new leased trucks). This change in the law has left some truck dealerships that have significant LKE deferments with an additional tax liability that will create a large one-time tax bill that could severely curtail cash flow.  Congress should pass transition rules for LKE deferments that allow businesses additional time to pay this new tax liability so they can continue to create jobs and invest in their businesses.

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Congress Should Oversee Proposed IRS Rule that Creates Burdensome Reporting Requirements 

The Internal Revenue Service (IRS) has been attempting to impose unnecessary and burdensome new requirements on truck dealers when they sell a truck to another dealer.   Since 1988, IRS regulations have allowed one certificate to cover all orders by a seller to the same purchaser (usually a dealer) for up to three years. ATD opposes a proposed IRS rulemaking that would eliminate the blanket exemption certificate covering multiple transactions and require dealers to file an individual certificate for each sale between dealers. This proposed rulemaking would create additional administrative burdens for dealers for no tangible benefit.  Congress should exercise oversight over this proposed regulation to preserve the blanket exemption certificate and oppose efforts to impose unnecessary new regulatory burdens on truck dealers.


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 TestimonyU.S. Senate Testimony