A major trucking advocacy group is praising legislation that would do away with the 12% federal tax on trucks and trailers.
The American Trucking Associations recently applauded Senators Todd Young, a Republican from Indiana, and Angela Alsobrooks, a Maryland Democrat, for introducing the Modern, Clean, and Safe Trucks Act, legislation to repeal the federal excise tax on the purchase of new trucks and trailers.
“First implemented over a century ago to fund America’s involvement in World War I, the FET currently adds tens of thousands of dollars to the cost of all new heavy-duty trucks and trailers, regardless of whether they run on diesel, alternative fuels, or zero-emission powertrains,” said ATA President & CEO Chris Spear. “Keeping this antiquated tax on the books imposes an enormous hardship—particularly for the family businesses and independent truckers who make up the overwhelming majority of trucking."
Spear said removing the tax will allow motor carriers to replace their trucks and trailers with modern, safer, and cleaner equipment, which will in turn provide a boost to U.S. manufacturing jobs.
The FET began in 1917 to help finance World War I. Today, it is the highest percentage federal excise tax levied on any product, amounting to a $6 billion annual impact on the trucking industry.
A House companion to the Modern, Clean, and Safe Trucks Act was introduced last year by a bipartisan coalition of Congressmen.
Improved rates boost Class 8 sales
May preliminary North America Class 8 net orders of 26.5k units increased 103% y/y. Complete industry data for May, including final order numbers, will be published by ACT Research in mid-June.
“Class 8 order strength continued in May, with preliminary orders of 26,500 units, up 103% y/y and 12% m/m, respectively. Despite the lack of build slots remaining in 2026 and entering what is historically a weak seasonal order period, new equipment demand remains buoyed by materially improved spot and contract rates, on top of regulatory clarity,” shared Carter Vieth, Research Analyst at ACT Research.
Regarding medium duty, he said, “Preliminary Classes 5-7 orders rose 32% y/y to 19,000 units in May. A moderate improvement from year-ago levels that may partially reflect the US’s economic resilience, but given EPA’27 is edging closer, may reflect some level of dealer stocking.”
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