TYSONS, Va. (July 21, 2020) Today, Rep. Chris Pappas (D-N.H.) sent a letter to the Democratic leaders of the U.S. House of Representatives calling for suspension of the 12% federal excise tax (FET) on heavy-duty trucks and trailers until the end of 2021 in the next coronavirus stimulus bill.

American Truck Dealers (ATD) leads the Modernize the Truck Fleet coalition, who with 196 industry groups and the UAW, encouraged House Democrats to sign the Pappas letter urging suspension of the FET. 

Rep. Pappas’ letter, signed by 55 House Democrats, was sent to Speaker Nancy Pelosi and House Democratic leaders. In his letter, Rep. Pappas underscored the impact that the pandemic has had on the trucking industry and called for suspension of the FET until the end of 2021. Temporarily suspending the 12% FET would immediately boost sales and protect trucking-related jobs, as Class 8 truck sales are expected to be down 50% this year due to government-ordered shutdowns and the pandemic.

A recent American Trucking Associations survey showed that 60% of fleets are likely to purchase new trucks if the FET were suspended. FET suspension would help save jobs, boost the economy and modernize truck fleets by accelerating the purchase of new trucks with the latest technology.

“Suspension of the 12% FET on new heavy duty trucks and trailers during this critical time could help fleets purchase new trucks and trailers, support U.S. truck and trailer manufacturing, supplier, and dealership jobs, and advance our goals of improving highway safety and reducing emissions,” the letter stated. 

“On behalf of the trucking industry, we thank Congressman Pappas for his efforts to protect the 1.3 million jobs supported by Class 8 truck and trailer manufacturing,” said Steve Bassett, ATD chairman and dealer principal of General Truck Sales in Muncie, Ind. “FET suspension is the right medicine for America’s trucking industry during this pandemic.”

The full text of Rep. Pappas’ letter and list of House Democratic signatories can be found here. An infographic further explaining the issue is here.