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Young, Alsobrooks introduce bill to repeal Federal Excise Tax on heavy trucks

Wednesday, June 3, 2026 at 7:00 PM

Today, U.S. Senators Todd Young (R-Ind.) and Angela Alsobrooks (D-Md.) introduced the Modern, Clean, and Safe Trucks Act to repeal the 12% federal excise tax on heavy trucks.

The 12% excise tax on heavy trucks is the highest excise tax levied on any product in the country. By adding as much as $15,000 to $30,000 to the cost of a new heavy truck, trailer, semitrailer chassis, or tractor, the tax makes it more expensive for trucking companies and independent operators to modernize their fleets. Additionally, because the tax applies only to new vehicle purchases and not used trucks, it creates an incentive to keep older vehicles on the road longer, slowing the adoption of newer trucks that are safer and more fuel-efficient.

“Repealing this tax is a simple step that can help the American trucking industry and consumers,” said Senator Young. “This tax hurts the small businesses and independent truckers that are the core of American trucking, and it promotes the usage of older, less efficient trucks. Cutting the federal excise tax on heavy-duty trucks and trailers will lead to newer, safer, and cleaner trucks on America’s roads.”

“I am proud to partner with Senator Young in introducing the Modern, Clean, and Safe Trucks Act of 2026 to repeal the excise tax on heavy trucks and trailers,” said Senator Alsobrooks. “This outdated tax incentivizes using older, less efficient trucks. Our bill supports a modern trucking industry allowing for the adoption of newer trucks that are safer and more fuel-efficient. In doing so, the bill supports small businesses, independent truckers, and our environmental goals – it just makes sense.”

“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 American Trucking Associations 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 12 percent Federal Excise Tax is outdated, inefficient, and punitive—to both dealers and fleets routinely adding over $20,000 to the price of a new heavy-duty commercial motor vehicle,” said ATD Chairman and President and CEO of Advantage Truck Group Kevin Holmes. “As we face challenges from tariff volatility and the ever-changing regulatory landscape, it is critical to reassess burdensome tax policies like the FET. Eliminating these barriers to fleet turnover will promote economic growth and lead to cleaner, safer trucks on America's streets and highways."

Text of the legislation is available here.

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