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ATRI: Repeal of Truck Excise Tax Would Cut Costs
Recent research by the American Transportation Research Institute (ATRI) highlights the negative impact of the 12% federal excise tax (FET) on new heavy-duty trucks, stating that it can cost trucking companies over $20,000 for a typical new Class 8 tractor and potentially over $40,000 for a combination of tractor and trailer. This tax could exceed $52,000 for new zero-emission models, further disincentivizing the adoption of cleaner technologies.
A legislative effort, the Modern, Clean and Safe Trucks Act, has been proposed to repeal this taxing structure, which dates back to World War I. The ATRI report suggests that eliminating the tax would not only lower costs for fleet operators but also accelerate the transition to modern, efficient, and safer vehicles. The study estimates that repealing the tax could lead to a cumulative reduction of nearly 66 million metric tons of CO2 emissions over the next decade as the industry transitions to newer, cleaner vehicles. Furthermore, the accelerated replacement of older trucks could save nearly 750 crashes annually, translating to approximately $13.5 billion in crash-related costs over ten years.
In the realm of transportation, experts have long recognized that tax policies should support, rather than hinder, advancements in vehicle safety and sustainability. The FET imposes a significant barrier to purchasing new, fuel-efficient trucks, pushing operators towards older, less efficient models, thereby counteracting national goals for safety and environmental responsibility. A repeal of the FET could not only stimulate equipment sales but also enhance overall road safety and environmental outcomes in the freight transportation sector.
A legislative effort, the Modern, Clean and Safe Trucks Act, has been proposed to repeal this taxing structure, which dates back to World War I. The ATRI report suggests that eliminating the tax would not only lower costs for fleet operators but also accelerate the transition to modern, efficient, and safer vehicles. The study estimates that repealing the tax could lead to a cumulative reduction of nearly 66 million metric tons of CO2 emissions over the next decade as the industry transitions to newer, cleaner vehicles. Furthermore, the accelerated replacement of older trucks could save nearly 750 crashes annually, translating to approximately $13.5 billion in crash-related costs over ten years.
In the realm of transportation, experts have long recognized that tax policies should support, rather than hinder, advancements in vehicle safety and sustainability. The FET imposes a significant barrier to purchasing new, fuel-efficient trucks, pushing operators towards older, less efficient models, thereby counteracting national goals for safety and environmental responsibility. A repeal of the FET could not only stimulate equipment sales but also enhance overall road safety and environmental outcomes in the freight transportation sector.
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