Repealing a Century-Old Truck Tax: What the Modern, Clean, and Safe Trucks Act Could Mean for the Industry

The trucking industry may soon see relief from a federal tax that has been in place for more than a century.

On June 2, 2026, U.S. Senators Todd Young (R-Ind.) and Angela Alsobrooks (D-Md.) introduced the Modern, Clean, and Safe Trucks Act, legislation aimed at eliminating the 12% federal excise tax (FET) on new heavy-duty trucks and trailers.  While the proposal is still working its way through Congress, it has already gained strong support from trucking industry leaders who believe the change could accelerate fleet modernization, improve safety, and reduce emissions across America's highways.

A Tax Rooted in History

The federal excise tax on heavy trucks was originally established in 1917 to help fund the United States' involvement in World War I.  More than 100 years later, the tax remains in place and is currently directed into the Highway Trust Fund to support transportation infrastructure projects.

While the purpose of the tax has evolved, many industry stakeholders argue that it no longer aligns with today's transportation landscape.

For fleets purchasing new equipment, the tax can add between $15,000 and $30,000 to the cost of a new truck or trailer. In an industry already facing rising equipment costs, maintenance expenses, insurance increases, and driver shortages, that additional burden can significantly impact purchasing decisions.

Why the Industry Wants Change

Supporters of the legislation argue that the federal excise tax unintentionally discourages fleets from investing in newer equipment.

Because the tax applies only to new trucks and trailers—not used equipment—many carriers choose to extend the life of older vehicles rather than absorb the added cost of purchasing new assets.

As a result, older trucks often remain on the road longer than intended, potentially leading to:

• Increased maintenance costs
• Reduced fuel efficiency
• Higher emissions
• More frequent breakdowns
• Missed opportunities to adopt newer safety technologies

Removing the tax could help carriers accelerate equipment replacement cycles and invest in the latest advancements in transportation technology.

Benefits for Safety and Sustainability

Modern commercial vehicles are significantly safer and more efficient than many of the trucks currently operating on U.S. roads.

New truck models often include advanced safety systems such as:

• Automatic emergency braking
• Collision mitigation technology
• Lane departure warnings
• Adaptive cruise control
• Enhanced visibility systems

In addition to safety improvements, newer trucks deliver substantial gains in fuel economy and emissions reduction.

Industry advocates believe repealing the FET would make it easier for fleets to adopt cleaner technologies, including alternative-fuel and zero-emission vehicles, helping support broader environmental goals while maintaining operational efficiency.

Supporting Small Businesses and Independent Truckers

One of the strongest arguments behind the legislation is its potential impact on small carriers and owner-operators.

Unlike large national fleets, smaller trucking companies often operate with tighter margins and fewer resources for capital investments.  An added tax burden of tens of thousands of dollars can delay equipment purchases and limit growth opportunities.

By eliminating the federal excise tax, lawmakers hope to create a more level playing field that allows small businesses and independent truckers to access the same safety and efficiency benefits available to larger competitors.

Potential Impact on Freight Transportation

If passed, the Modern, Clean, and Safe Trucks Act could trigger increased demand for new commercial vehicles and stimulate manufacturing activity throughout the transportation supply chain.

For shippers, newer fleet equipment could translate into:

• Improved service reliability
• Reduced risk of equipment-related delays
• Better fuel efficiency
• Enhanced shipment visibility through newer technologies
• Stronger compliance with evolving environmental regulations

A modern fleet is often a more dependable fleet, helping transportation providers maintain service levels even as market conditions continue to evolve.

What It Means for Road Scholar Transport

At Road Scholar Transport, we understand that reliable transportation starts with dependable equipment.  Whether moving temperature-sensitive pharmaceuticals, food-grade freight, hazardous materials, or expedited shipments, modern equipment plays a critical role in maintaining safety, compliance, and service performance.

Policies that encourage fleet modernization have the potential to strengthen the entire supply chain by improving operational efficiency, reducing emissions, and enhancing roadway safety.

While the proposed legislation still faces the legislative process ahead, it represents a significant step toward addressing one of the trucking industry's longest-standing financial barriers.

Looking Ahead

The federal excise tax on heavy trucks has remained largely unchanged since World War I. As lawmakers evaluate the future of freight transportation, many industry leaders see its repeal as an opportunity to accelerate investment in safer, cleaner, and more efficient equipment.

If enacted, the Modern, Clean, and Safe Trucks Act could help usher in a new era of fleet modernization—benefiting carriers, drivers, shippers, manufacturers, and consumers alike.

For an industry that keeps America's economy moving, reducing barriers to innovation may prove to be a road worth traveling.