Industry Wire

TRALA Lobbying Congress for Investment Tax Credits for 2010 Compliant Trucks

TRALA is continuing its push for passage of federal legislation that would create tax credits for the purchase or lease of new medium and heavy-duty trucks. A proposal being pushed by TRALA and other industry groups would create a 10% investment tax credit (ITC) for the purchase or lease of heavy-duty, class 8 trucks with engines that are compliant with 2010 emissions mandates. The proposal also includes a $6,000 “green voucher” program that would be used towards the purchase or lease of medium-duty Class 6-7 trucks with 2010 compliant engines. The green voucher program would be similar to the recent cash for clunkers program, where a dealer/lessor places a truck order with the manufacturer, followed by completion of a voucher that is submitted to the government, and the government then reimburses the truck dealer/lessor for the credit.

TRALA’s message to Congress is that Investment Tax Credits and vouchers used towards the purchase of medium and heavy-duty trucks would create employment opportunities in the manufacturing, supplier, and dealer networks in the trucking industry. New 2010 model year engines with near-zero greenhouse gas emissions provide significant environmental benefits, but those benefits will not become a reality unless dealers’ and lessors’ customers have the financial means to purchase or lease these trucks. The incremental cost of purchasing a 2010 model year truck is estimated to be about 5-10%, or $13,000 higher than the cost of a 2007 model year truck, mostly due to the engine emission mandates from the U.S. Environmental Protection Agency (EPA).

In addition to the environmental and employment benefits this proposal would provide, TRALA believes it will also benefit the Highway Trust Fund (HTF). The 12% Federal Excise Tax (FET) that applies to purchases of heavy-duty trucks is estimated to generate $1.4 billion to be deposited in the HTF due to the incremental cost to purchase Class 8 trucks. The HTF has seen significant shortfalls over the past four years, largely as a result of historically low truck sales. This proposal will create jobs, help get the most environmentally friendly trucks on the road, and contribute money to the highway trust fund.