OOIDA, manufacturers call for tax credit on new trucks

| 8/26/2010

OOIDA has teamed up with truck manufacturers and equipment dealers to urge the Obama administration to implement a temporary 10 percent tax credit on the purchase of 2010-compliant trucks.

The group of companies and associations stated in a letter dated July 20 that without an incentive to buy new equipment, many owner-operators and larger motor carriers alike are going to stretch their dollars as far as they can with trucks they already own.

The vast majority of trucks on the road are registered with motor carriers and owner-operators that own and operate 20 or fewer trucks.

Sales of trucks in 2009 reached historically low levels, according to the letter authors, a group that included the American Truck Dealers, Truck Manufacturers Association, and OEMs Daimler, Mack, Navistar, Volvo and Hino.

“Your help is needed to get the trucking industry back at full speed,” the authors stated.

“Placing a short-term investment tax credit of 10 percent towards the purchase of Class 8 heavy-duty trucks with certified 2010 engines along with a ‘green voucher’ incentive for smaller Class 6 and Class 7 medium-duty trucks with 2010 engines would provide an impetus for both trucking companies and owner-operators to purchase the new, cleaner trucks.”

The tax incentive would help put more people back to work according to the group.

“Simply put, until the economy begins to demonstrate signs of continued growth and stability, trucking companies will not commit to purchase any of these more expensive trucks,” the authors said.

“As a result, manufacturers and dealers will not expand or hire new employees and if sales do not improve may lead to additional layoffs.”

According to the signers of the letter, White House staff members have indicated that they would like to follow up in a meeting, which is to include OOIDA, in early September.

– By David Tanner, associate editor