More than 100 trucking industry trade groups have signed on to a letter to the leadership of the US House and Senate asking Congress to suspend the 12% federal excise tax on new heavy-duty trucks and trailers through 2021 in the next coronavirus economic recovery legislation.
Truck sales in the US are predicted to decline by 50% this year due to the pandemic, the letter states. And, as a result of government-ordered closures, truck and trailer manufacturing plants and dealers have either suspended or scaled back operations.
“To jump start the economy after the pandemic, a suspension of the burdensome FET, which increases the cost of new heavy-duty trucks and trailers by $22,000 on average, would immediately spark the purchase of heavy-duty trucks and trailers,” the letter says. “In turn, this would help save or bring back the livelihoods of the 7.8 million Americans employed in jobs related to trucking.”
Tax relief would also encourage the sale of newer trucks, which have the latest safety technologies that help reduce roadway crashes and related injuries and fatalities, the letter notes.
“During this crisis, our nation has been more dependent than ever on our trucking fleet for delivery of goods and critical medical supplies, yet the average age of a truck on the road today is almost 10 years old,” the letter concludes. “We believe the suspension of the FET can help both in keeping the nation well supplied and in rebuilding America’s vital trucking industry and related employment.”
All members of the Modernize the Truck Fleet (MTF) Coalition, a coalition of truck industry stakeholders led by American Truck Dealers, signed the letter in support of FET suspension.
“Unlike other stimulus programs, FET suspension does not require more paperwork, new compliance rules, or a new program,” said Steve Bassett, ATD chairman and dealer principal of General Truck Sales in Muncie, IN. “With our nation more dependent than ever on trucking to deliver goods and critical medical supplies, we urge Congress to suspend the FET to bolster our trucking sector and help our economic recovery.”
National Trailer Dealers Association President Gwendolyn Brown agreed.
“Any suspension of the FET or an ultimate repeal of the tax would greatly benefit the heavy-duty truck and semi-trailer industry that provides the vehicles to deliver essential goods to our nation through the best and worst of times—and especially now during the COVID-19 pandemic,” Brown told Trailer/Body BUILDERS.
And Truck Trailer Manufacturers Association President Jeff Sims called the FET suspensions “a great way to incentivize carriers to add to their fleet a more efficient trailer.”
Indeed, the trucking industry is “suffering” during this coronavirus crisis and shutdown, suggested Chris Spear, American Trucking Associations president and CEO.
“Truckers aren’t looking for a bailout as they keep America moving during these challenging times and prepare for our eventual recovery, but a tax holiday on the antiquated federal excise tax would be good medicine to help with liquidity and to stimulate the purchase of newer, safer trucks and trailers,” Spear said.
NTEA—The Association for the Work Truck Industry also signed on.
“NTEA believes that suspending the FET at this time would serve as an effective incentive to increase the sale of safer and cleaner trucks while helping to retain domestic-based manufacturing jobs and rebuild the economy,” said Steve Carey, NTEA president and CEO.
NTEA has provided additional FET resources here.
The full text of the letter and complete list of signatories can be found here.
