Legislative Push to Eliminate Federal Excise Tax Gains Momentum

By Ftt Last updated Mar 31, 2025

house-pursues-repeal-of-federal-excise-tax — House Pursues Repeal of Federal Excise Tax

March 31, 2025, 4:06 PM EDT

Trucking Associations Challenge outdated Tax

New trucks available at a Kenworth dealership.(kenworthsalesco.com)

A new proposal aimed at eliminating a tax from the world War I era on heavy-duty trucks and trailers has been put forward in the U.S. House of Representatives.

Rep. Doug LaMalfa (R-Calif.), who plays a critically important role on the Transportation and Infrastructure Committee, is pushing to scrap this hefty 12% federal excise tax that applies to certain commercial vehicles. Dubbed the Modern, Clean and safe Trucks Act, this bill was reintroduced on March 27 after previous attempts fell flat in Congress.

“This tax has morphed from a temporary measure during wartime into an outdated burden for truck buyers,” LaMalfa stated passionately about his ongoing campaign against it.”It’s the highest percentage-based tax imposed by Congress on any product but doesn’t reliably fund our Highway Trust Fund. This outdated levy forces buyers to stick with older models that are less efficient, hindering progress in modernizing our trucking industry.”

icymi ‘lamalfa Reintroduces Bill to Repeal Federal Excise Tax on Heavy Trucks’ https://t.co/m16zVUHoPt — Eugene Mulero (@eugenemulero) March 31, 2025

The bill boasts support from co-sponsors like Reps. Darin LaHood (R-Ill.), Max Miller (R-Ohio), Chris Pappas (D-N.H.), and Salud Carbajal (D-Calif.).They argue that this tax can inflate costs by $15,000 to $30,000 for new heavy trucks and trailers. “A repeal is crucial for modernizing transportation while also cutting emissions,” noted Carbajal.

Miller added his thoughts as well: “America’s truckers are vital for our economy’s flow; however, antiquated policies like this excise tax make it tough for them to upgrade their equipment.” The bill is currently under review by the Ways and Means Committee but hasn’t made it onto their agenda yet.

Praise from Industry Leaders

“Originally introduced over a century ago as part of financing efforts during World War I,” said Chris Spear, CEO of American Trucking Associations in support of the legislation’s revival. “This excise tax now stands as one of the largest burdens placed upon any product—adding around $24K per new clean-diesel tractor-trailer.”
he emphasized how keeping such an archaic levy only complicates matters for small fleets and independent operators who dominate trucking today.
“Removing this financial strain will enable carriers to invest in safer and cleaner vehicles—ultimately benefiting manufacturing jobs too,” he concluded.

Ryan Streblow, head of National Tank Truck Carriers chimed in too: “Eliminating this hefty tax would allow us to reinvest significantly into specialized equipment featuring advanced safety measures while reducing emissions within our bulk transport sector.” He pointed out that rising costs make such taxes notably burdensome when trying to upgrade fleets sustainably.

The Highway Trust Fund was established back during Eisenhower’s presidency with aims at supporting state-level transportation projects but relies heavily on dwindling revenue from federal fuel taxes.