Proposed Rule Released for Automatic Emergency Braking on Heavy Vehicles
In late June, a proposed rule was jointly released by the National Highway Traffic Safety Administration (NHTSA), Federal Motor Carrier Safety Administration (FMCSA), and Department of Transportation (DOT) to require automatic emergency braking on heavy vehicles with a gross vehicle weight rating greater than 10,000 pounds. In addition, the proposal also includes an amendment to Federal Motor Vehicle Safety Standard No. 136 to require electronic stability control on most heavy vehicles. The proposed rule is open for public comment for 60 days after which the comments will be reviewed. With the time needed to review the comments and make possible changes to the proposed rule, it’s possible the final rule goes into effect in 2024. You can read the proposed rule here.
As vehicles become safer through technological advancements and mandates such as this, their cost is likely to increase further. The prior few years has seen supply and demand combined with inflationary pressure push the cost of new and used vehicles much higher. Fleets may need to adjust their capital expenditure budget to adjust to the new environment and forecast their future needs to maintain a strong balance sheet.
Nathan is a CPA and has more than ten years of experience providing tax planning, consulting and compliance services to a number of privately held businesses and individuals in a variety of industries, with a special focus on the transportation and logistics industry. He actively communicates with clients and seeks ways to align their individual and business goals with available tax strategies to allow them to make well-informed decisions.
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