Skip to content
Congress·In Committee·11 months ago

Congress Proposes Cutting 12% Tax to Help Truckers Buy Cleaner and Safer Vehicles

Also known as: Modern, Clean, and Safe Trucks Act of 2025

Legislative Progress

✓ Filed
Review
House
Senate
President

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

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.
TaxesInfrastructure TransportationEnergy Environment

Milestones

2 milestones2 actions
Mar 27, 2025House

Referred to the House Committee on Ways and Means.

Mar 27, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

long_term

Congress would need to identify a replacement funding source for the Highway Trust Fund

The Highway Trust Fund currently receives billions from this excise tax. Without a replacement, road and bridge repair funding could face shortfalls, potentially delaying infrastructure projects across the country.

Related News

4 articles
Nashua Telegraph·11 months ago

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.

C=
S&P Global·11 months ago

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.

C=
Land Line Media·11 months ago

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.

C~

Source Information

Document Type

Congressional Bill

Official Title

Modern, Clean, and Safe Trucks Act of 2025

Bill NumberHR 2424
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Cosponsors

(6)
D: 2R: 4

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.