Modern, Clean, and Safe Trucks Act of 2026

Key Points

• This bill would eliminate the 12% federal excise tax on new heavy trucks, tractors, and trailers. This tax is the highest percentage federal ad valorem excise tax in the country and can add $7,000 to $50,000 to the cost of a single vehicle depending on the type.
• Congress argues that removing this tax will speed up the replacement of older, dirtier trucks with newer models that pollute far less. About a third of heavy trucks on the road today were built before 2010 and lack more than a decade of environmental and safety improvements.
• The bill specifically notes that the tax hits electric and alternative-fuel trucks harder because those vehicles already cost more upfront. Removing the tax could make it easier for trucking companies to switch to zero-emission vehicles.
• The excise tax currently sends money to the Highway Trust Fund, which pays for road and bridge repairs. The bill acknowledges that Congress would need to find a replacement funding source but does not propose one.
• The tax dates back to 1917 when it was created to help pay for World War I. The bill was introduced by Senators Young and Alsobrooks with bipartisan support and would take effect immediately upon enactment.