Proposal could make new trucks more affordable
A bill recently proposed in Congress would repeal a century-old excise tax on trucks, significantly reducing the cost of new heavy-duty trucks, tractors, and trailers.
Congress originally created the tax in 1917 to help finance America’s involvement in World War I. More than 100 years later, the 12-percent federal retail excise tax routinely adds between $12,000 and $22,000 to the cost of a new heavy truck, tractor, or trailer.
Savings beyond taxes
The proposed change to this program is about more than money, however. According to the authors of the bill, repealing the tax would encourage replacement of older internal combustion engine trucks with new heavy-duty trucks that employ the latest safety and environmental technologies.
Data highlighted in the bill support the move. Currently, more than half of the Class 8 trucks on the road are more than 10 years old and lack a decade of environmental and safety technological advancements.
Since 2007, new trucks have achieved significant carbon dioxide reductions and fuel efficiency improvements, which have saved 296 million barrels of crude oil. Over the past three decades, cleaner fuel and advanced engines have combined to reduce nitrogen oxide emissions by 97 percent and particulate matter emissions by 98 percent.
By upgrading to a vehicle powered by the latest clean diesel engine, the owner of a single Class 8 truck can expect to save about 2,200 gallons of fuel each year compared to previous generations of technology.
The proposed bill was introduced in the Senate on July 22, 2021. We’ll keep you posted on developments.


















































