110-Year-Old Truck Tax Could Finally Be Repealed
A bipartisan bill introduced on June 2, 2026, by U.S. Senators Todd Young (R-Indiana) and Angela Alsobrooks (D-Maryland) aims to eliminate the 12% Federal Excise Tax (FET) on new heavy-duty trucks and trailers.
Originally created in 1917 to help fund World War I, the tax now adds between $15,000 and $30,000 to the price of a new truck.
Supporters of the Modern, Clean, and Safe Trucks Act argue that the tax discourages fleet modernization because it applies only to new equipment, pushing carriers to keep older trucks on the road longer.
According to lawmakers and industry leaders, repealing the FET would:
✅ Lower the cost of new trucks and trailers
✅ Help small trucking businesses and owner-operators
✅ Improve highway safety through newer equipment
✅ Reduce emissions and improve fuel efficiency
✅ Support U.S. manufacturing jobs
The trucking industry has long criticized the tax as outdated and burdensome, especially for independent operators and family-owned fleets.
If passed, this legislation would mark the end of one of the oldest federal taxes still affecting the trucking industry.
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