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NTEA calls on Congress to repeal the Federal Excise Tax
NTEA calls on Congress to repeal the FET as a part of any upcoming infrastructure legislation. Eliminating the FET would provide Congress the opportunity to create long-term stability in the Highway Trust Fund by replacing the FET with a funding source not based on annual truck sales.
"NTEA is a longstanding advocate of repealing the more than 100-year-old burdensome and complex tax, and is a founding member of the Modernize the Truck Fleet coalition," said Steve Carey, NTEA's president and CEO. "We believe repeal will help fleets to replace older and less fuel-efficient heavy-duty trucks with safer and more environmentally friendly new trucks."
Repealing the FET would allow purchasers to more readily integrate cleaner and safer vehicles into their fleet and will help protect U.S. jobs. Additionally, repeal would clear the way to better alternative funding mechanisms for highway repair and maintenance.
Senator Young stated, "Our bipartisan bill will open the floodgates to investment in safer and cleaner trucks and trailers that will benefit our economy and the environment."
The FET, originally created in 1917 to help pay for World War I, is the highest percentage excise tax levied by the federal government. Adding the tax on top of the costs associated with the latest emissions technology for heavy-duty trucks forces many small businesses to delay purchasing a new vehicle.
"Our tax policy is one of the most effective ways Congress can encourage cleaner and greener technology. The current federal excise tax has become a barrier to the progress," said Senator Cardin.
For more information on FET, including a copy of S. 2435, the Modern, Clean, and Safe Trucks Act of 2021, visit ntea.com/repealfet. (http://www.ntea.com/