Modern, Clean, and Safe Trucks Act Would Repeal FET
The Federal Excise Tax (FET). Everyone in the trucking industry’s favorite thing to hate. Established during World War I and kept for over one hundred years thereafter, adds a 12% fee to new trucks that goes into Uncle Sam’s pocket. Numerous attempts have been made to suspend or remove it, and the latest one as of June 2026 is the Modern, Clean, and Safe Trucks Act.
Details
“This outdated tax incentivizes using older, less efficient trucks,” said Senator Alsobrooks, a Democrat from Missouri who helped introduce the Bill. “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.”
Considering that the average age of a semi-truck on the road in the United States hovers at around 14 years old (2012), suspending the FET to encourage the purchase of newer trucks can drastically lower that average and bring adoption of better technology to the road, hence the name of the Bill: the Modern, Clean, and Safe Trucks Act.
“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,” Chris Spear of the American Trucking Associations said in a statement. “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.”
Conclusion
Of course, suspending the FET would result in reduced revenue for the federal government. If we assume 200,000 new trucks are sold every year, then a 12% excise tax generates revenue equal to the untaxed sales of 24,000 heavy-duty trucks. The Bill acknowledges that and says that an alternative method of raising money for the Highway Trust Fund might need to be pursued, one that does not punish drivers from making the transition to a newer truck.
Will it pass this time? If Congress continues swinging at this issue, eventually they will get a hit. We will just have to wait and see if this is finally the case that will get enough votes for it to become law.
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