Yuba-Sutter Times

Washington, D.C.—Congressman Doug LaMalfa (R-Richvale) has reintroduced legislation aimed at repealing the 12% federal excise tax on heavy trucks. This excise tax is currently the highest on any product in the United States. According to LaMalfa, the tax increases the cost of new trucks by up to $30,000, leading businesses to rely on older, less efficient vehicles. The bill is a bipartisan effort, introduced with the support of Representatives Pappas (D-NH), LaHood (R-IL), Carbajal (D-CA), and Miller (R-OH), and has gained support from industry leaders.

Chris Spear, President and CEO of the American Trucking Associations, stated that the Federal Excise Tax (FET), initially implemented to finance World War I, now represents "the largest excise tax on any product, adding $24,000 to the cost of each new clean-diesel tractor-trailer." He emphasized that the tax creates significant challenges for small fleets and independent truckers. Spear expressed gratitude for the efforts of the bill's sponsors, citing its potential benefits in improving highway safety, reducing emissions, and enhancing economic strength.

Eric Sauer, CEO of the California Trucking Association, echoed similar sentiments. He conveyed appreciation to the bill's sponsors for their role in easing financial impediments to fleet modernization. Sauer mentioned that repealing the FET would "pave the way for the broader adoption of cleaner, more fuel-efficient trucks," which could contribute to environmental goals and technological advancement.

Jim Mullen, Executive Director of the Clean Freight Coalition, emphasized the importance of the bill in encouraging motor carriers to upgrade to cleaner and safer trucks. Mullen pointed out that replacing old equipment with advanced technology could provide "immediate benefits for the environment" while protecting supply chain resiliency.

Scott Pearson, Chairman of the American Truck Dealers (ATD) and President of Peterbilt of Atlanta, noted that the excise tax contributes significantly to the cost of new trucks, adding about $20,000 to diesel trucks and $50,000 to electric trucks. Pearson commended the legislative initiative for aiding fleet modernization efforts and improving road safety.

National Tank Truck Carriers President and CEO Ryan Streblow described the excise tax as a major barrier that hampers fleet upgrades. Streblow advocated for the repeal, emphasizing it would support a "safer, more sustainable supply chain."

Congressman LaMalfa, who chairs the Congressional Western Caucus, represents California’s First Congressional District, encompassing Butte, Colusa, Glenn, Lassen, Modoc, Shasta, Siskiyou, Sutter, Tehama, and Yuba Counties.