Modern, Clean, and Safe Trucks Act of 2025
Congress Proposes Cutting 12% Tax to Help Truckers Buy Cleaner and Safer Vehicles
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- This bill would eliminate a 12% federal tax that buyers currently pay when purchasing new heavy-duty trucks, tractors, and trailers. This tax has been in place since 1917 and is currently the highest percentage rate of any federal sales-based tax.
- Trucking companies and independent drivers would see significant price drops on new equipment. Removing the tax could save buyers about $7,000 on a new trailer, $20,000 on a clean diesel truck, and up to $50,000 on a new electric truck.
- The goal is to help the environment and improve road safety by making it cheaper to replace old vehicles. Nearly half of the heavy trucks on the road today are over 10 years old and lack modern safety features and the latest technology used to reduce air pollution.
- By lowering the cost of new technology, the policy aims to speed up the transition to zero-emission vehicles. Currently, the 12% tax makes expensive electric and alternative-fuel trucks even harder for companies to afford.
- One major trade-off is that this tax currently provides money for the Highway Trust Fund, which pays for road and bridge repairs. If this tax is removed, Congress would need to find a different, more reliable way to fund national construction projects.
Impact Analysis
Personal Impact
Unionized workers in truck manufacturing, dealerships, and related industries could see more demand for new vehicles if the tax cut spurs purchases, potentially supporting about 1.3 million related jobs. However, the loss of Highway Trust Fund revenue could eventually reduce federal spending on road and bridge projects that employ many union construction workers.
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
4 articles
Pappas, LaMalfa reintroduce legislation to repeal federal excise tax on heavy trucks
U.S. Reps. Chris Pappas and Doug LaMalfa reintroduced the Modern, Clean, and Safe Trucks Act to repeal the 12% federal excise tax on heavy trucks. Supporters argue the tax, dating to 1917, adds up to $30,000 to the cost of new equipment, discouraging the purchase of cleaner, safer vehicles.
How Tariffs Are Affecting the Automotive Industry
The report notes that H.R. 2424, which would end the 12% Class 8 Federal Excise Tax, could serve as a legislative countermeasure to rising costs from new tariffs on truck parts. The bill is viewed as a way to maintain affordability for heavy-duty vehicles amidst broader trade policy shifts.
Rep. LaMalfa brings back bill to repeal tax on heavy trucks
While the bill has strong bipartisan support in the House, some groups like OOIDA express concern that repealing the tax could create a significant shortfall in the Highway Trust Fund. The 12% tax is currently the highest percentage-based tax imposed on any product by Congress.
Source Information
Document Type
Congressional Bill
Official Title
Modern, Clean, and Safe Trucks Act of 2025
Data Sources
Sponsor
Cosponsors
(6)Analysis generated by AI. Always verify with official sources.