ATD is currently urging Congress to suspend the FET during the coronavirus pandemic because of the immediate impact it will have on jobs and the economy. Due to the coronavirus pandemic, truck sales in the U.S. are predicted to decline by 50% in 2020. In March, Class 8 truck orders dropped by 52% compared to the same time last year. As a result of government-ordered closures, truck manufacturing plants and truck dealers have either suspended or scaled back operations. To immediately jump start the vital trucking sector and save trucking jobs, Congress should suspend the 12% federal excise tax (FET) on new heavy-duty trucks and trailers until the end of 2021.
The FET on heavy-duty trucks was first imposed in 1917 to help pay for World War I. This tax on most new heavy-duty trucks, tractors and trailers was originally 3% and has grown to 12% today. As the highest excise tax on a percentage basis that Congress levies on a product, the FET often adds as much as $22,000 to the price of a new heavy-duty truck. With Congress considering ways to revive our economy due to COVID-19, a suspension of the FET would immediately spur the purchase of newer safer and cleaner heavy-duty trucks and trailers and help support and bolster the jobs of the 7.8 million Americans employed in trucking-related jobs and help rebuild our economy.
➢ Issue Brief: “Help the Economy Recover and Save Jobs in the Trucking Industry: Suspend the Federal Excise Tax on Heavy-Duty Trucks”
➢ Industry Stakeholder Letter to Congressional Leadership on Suspension of the FET on Heavy-Duty Trucks
and Trailers – April 2020 (Updated September , 2020)
➢ Press Release: ATD and 116 Industry Stakeholders Call for Suspension of Federal Excise Tax on Heavy-Duty Trucks and Trailers – April 2020
➢ Issue Brief: “Help Save Jobs that Put Newer, Cleaner Trucks and Trailers on the Road"
➢ Issue Brief: "Deploy Newer, Safer Trucks and Trailers on the Highways"