H.R. 1440 May Repeal FET
Bills that are introduced into Congress often die, but the good news is that they can always be tried again and again, and only have to get through once. That is the case with the Modern, Clean and Safe Trucks Act of 2023, or H.R. 1440, which is the latest attempt to get a bill through Congress that repeals the Federal Excise Tax (FET).
Details
We have talked about the FET numerous times before, and not much has changed since we last wrote about it. The century-old tax increases the price of a truck by an additional 12%. While the government no doubt loves having this additional tax revenue, it also incentivizes truckers to hold on to their older equipment for as long as they can, oftentimes having older, more polluting, less safe technology that was grandfathered in by regulatory changes.
In short, Representative Doug LaMalfa (R-California., District 1), who introduced a similar bill in 2020, is trying his hand again in removing this tax so that truckers have more of a reason to finally send their decade-old rigs to truck heaven. The exact same Bill is also running through the Senate with sponsorship from Todd Young (R-Indiana) and Ben Cardin (D-Maryland).
In introducing the Bill, LaMalfa started with a partisan speech.
“Thanks to the continuous efforts of California and the Biden Administration, new rules, regulations and requirements are being thrown on any vehicle daring to continue using gas and diesel,” LaMalfa said. “These mandates aren’t free. They spike the cost of trucks, tractors and other heavy equipment by thousands of dollars. But the facts on the ground don’t change: trucks carry 72% of the nation’s freight by tonnage. The left’s preferred alternative, electric and zero-emission trucks, aren’t affordable. Repealing the FET puts safer and cleaner trucks on the road.” We are not sure if vilifying those you would need the support of in order to get this Bill passed through Congress is the best idea, but we will have to see if it works out for them.
Conclusion
Numerous surveys have had fleet owners admit that the FET is a strong deciding factor against buying newer trucks, so in a way, repealing it would count as a tax credit for the business owner. Even if repealing the FET does not work this time, we consider it an admirable goal that we are happy Doug LaMalfa has decided upon which to take up the mantle. If the FET becomes repealed, the average age of trucks on the road is expected to drop.
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