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Washington – Today, the ���ϲ����� applauded Senators Todd Young (R-IN) and Angela Alsobrooks (D-MD) for introducing the Modern, Clean, and Safe Trucks Act, legislation to repeal the antiquated 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 ���ϲ�����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.  Removing this burden 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.  Our industry is grateful to Senators Young and Alsobrooks for their leadership on this issue to improve highway safety, reduce emissions, and strengthen our economy.”

The FET began in 1917 to help finance World War I.  Today, it is the highest percentage federal excise tax—at 12 percent—levied on any product, amounting to a $6 billion annual burden on the trucking industry.  In many cases, this exorbitant additional expense simply puts new trucks out of reach, and small businesses with less access to capital are disproportionately harmed.  Fleets operating 10 trucks or fewer comprise 96% of U.S. trucking companies.  Keeping this tax on the books decreases orders for trucks and trailers, consequently reducing manufacturing jobs.  It also delays the deployment of new trucks and trailers, which have greater environmental and safety benefits compared to older models still on the road. 

A House companion to the Modern, Clean, and Safe Trucks Act was introduced last year by a bipartisan coalition of Congressmen.