This bill repeals the federal excise tax on heavy trucks and trailers to encourage the adoption of newer, cleaner, and safer vehicles.
Doug LaMalfa
Representative
CA-1
The "Modern, Clean, and Safe Trucks Act of 2025" repeals the federal excise tax on heavy trucks and trailers to encourage the adoption of newer, cleaner, and safer vehicles. This aims to reduce emissions, improve fuel efficiency, and support jobs in the heavy-duty trucking industry. The Act also includes updates to related sections of the Internal Revenue Code to reflect these changes, which take effect from the date the Act was introduced.
Bill Aims to Repeal 12% Federal Excise Tax on New Heavy Trucks and Trailers
This bill, the "Modern, Clean, and Safe Trucks Act of 2025," proposes eliminating the long-standing 12 percent federal excise tax currently levied on the sale of new heavy-duty trucks, tractors, and trailers. The core idea is straightforward: removing this tax aims to lower the upfront cost of new big rigs, making it easier for truckers and companies to invest in modern vehicles that are cleaner and safer than older models.
Why Ditching the 12% Tax Matters
Let's break down what that 12% tax actually means in dollars. According to the bill's findings, it adds a hefty chunk to the price tag – think $7,000 or more for a new trailer, over $20,000 for a standard clean diesel truck, and potentially up to $50,000 for trucks equipped with next-generation engine tech, including electric or alternative fuel systems. The legislation argues this tax acts as a significant financial hurdle, essentially penalizing businesses for upgrading their fleets, especially when it comes to adopting newer, greener technologies which often carry a higher initial cost.
Trading Taxes for Tech: The Push for Cleaner Trucks
The argument laid out in the bill is that this tax discourages the replacement of older trucks, keeping less efficient and higher-emission vehicles on the road longer. Newer heavy-duty trucks, particularly those built since 2007, boast significant improvements, cutting nitrogen oxide (NOx) and particulate matter (PM) emissions by up to 98% compared to late 90s models, alongside better fuel economy. By repealing the tax (specifically, subchapter C of Chapter 31 in the Internal Revenue Code), the bill intends to accelerate the adoption of these advanced vehicles. While boosting clean tech adoption and potentially supporting the roughly 1.3 million jobs tied to the industry are key goals, the bill also acknowledges the tax currently feeds the Highway Trust Fund. It suggests a more reliable funding mechanism should be found, but doesn't establish one, leaving a question mark about how that revenue gap would be filled.