WASHINGTON (March 31, 2025)—Today, the American Truck Dealers (ATD) released the following statement applauding Reps. Doug LaMalfa (R-Calif.), Chris Pappas (D-N.H.), Darin LaHood (R-Ill.), Salud Carbajal (D-Calif.), and Max Miller (R-Ohio) for reintroducing H.R. 2424, the Modern, Clean and Safe Trucks Act of 2025. This important bipartisan legislation would repeal the 12 percent Federal Excise Tax (FET) on heavy-duty trucks and trailers. 

The FET, enacted more than a century ago, is the highest excise tax on a percentage basis that Congress levies on a product, hindering the ability of dealers to sell the safest and cleanest trucks on the road. 

"The burdensome 12 percent Federal Excise Tax on the sale of new heavy-duty trucks and trailers is an outdated levy which drives up costs and slows the adoption of safer, more fuel-efficient vehicles,” said Scott Pearson, ATD Chairman and President of Peterbilt of Atlanta. “This onerous tax adds approximately $20,000 to the price of a new diesel truck, and $50,000 to the cost of a new electric truck. America’s truck dealers commend Reps. LaMalfa and Pappas for their leadership on this important issue, which will help motor carriers modernize their fleets and improve road safety.”

“For over a century, the federal excise tax on heavy-duty trucks has gone from a temporary wartime measure to fund World War I, to an outdated tax that punishes truck buyers,” said Rep. LaMalfa. “This is the highest percentage-based tax Congress imposes on any product, yet it fails to be a reliable source of funding for the Highway Trust Fund. This tax forces buyers to stick with older, less efficient models and makes it harder for truckers to modernize their rigs, holding back the trucking industry from updating. Let’s repeal this outdated tax and support the men and women who keep America moving.”

“Every potential saving we can deliver to businesses makes a difference to help them operate and lower costs for families,” said Rep. Pappas. “Cutting the federal excise tax on heavy-duty trucks and trailers will help America's Main Street economy grow and strengthen our supply chains, while also supporting the adoption of newer, safer, and cleaner trucks. This legislation is bipartisan and commonsense, and I’ll keep fighting for Congress to take it up to provide immediate relief to small businesses and consumers alike.”

“The Illinois trucking industry is a vital economic driver that impacts agriculture, manufacturing, and small businesses,” said Rep. LaHood. “I am proud to join my colleagues in introducing this critical piece of legislation that abolishes the federal excise tax on semi-trucks and trailers. This outdated tax hinders trucking companies from hiring more drivers and upgrading their fleets to cleaner, safer, and more efficient models.”

“Repealing the outdated federal excise tax on heavy-duty trucks—which was first enacted over a century ago—is essential to modernize our transportation sector and help reduce emissions,” said Rep. Carbajal. “This outdated tax drives up the costs of cleaner, more efficient trucks. By eliminating this financial barrier, we can accelerate fleet turnover, enhance road safety, and promote economic growth while supporting American manufacturing and jobs. I am glad to join this effort to pave the way for a cleaner, safer, and more competitive industry."

“America’s truckers work hard to keep our economy moving, but outdated policies like this federal excise tax on heavy trucks and trailers make it harder for them to upgrade to safer, more reliable equipment,” said Rep. Miller. “By eliminating this excessive tax, we can empower small trucking businesses to invest in modern trucks, reduce costs, and improve safety on our highways. Supporting our truckers means ensuring they have access to the tools they need to keep goods moving efficiently in our communities.” 

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