Sponsors (12)
The bill reduces up‑front costs for buyers of heavy trucks and may speed replacement and cleaner-vehicle adoption for some operators, but it cuts dedicated excise revenue for highways and risks shifting costs onto general taxpayers or programs unless lawmakers enact replacement funding.
Small-business truck owners and fleet operators will pay less up front for heavy trucks and trailers, lowering purchase costs by thousands and improving cash flow for trucking and logistics firms.
Owners replacing older trucks will face lower costs, which could accelerate replacement of higher‑polluting vehicles and improve local air quality and public health.
Lower up‑front prices for electric and alternative‑fuel trucks will make zero‑emission technologies more affordable and help drive adoption of cleaner vehicles.
All taxpayers will lose dedicated excise revenue for the Highway Trust Fund, risking reductions in road and bridge funding unless Congress replaces the revenue.
Eliminating the heavy‑truck/trailer excise tax will lower federal revenues and could increase deficits or force higher taxes or cuts to other programs, shifting the funding burden to general taxpayers.
Removing the excise tax reduces a price signal that helps internalize environmental costs of heavier or higher‑emitting vehicles, which could slow net emissions reductions and disproportionately harm communities near freight corridors.
Based on analysis of 3 sections of legislative text.
Repeals the 12% federal excise tax on new heavy trucks, tractors, and trailers and removes related Code references.
Repeals the 12% federal retail excise tax on new heavy trucks, tractors, and trailers and removes related references throughout the Internal Revenue Code. The repeal is effective for sales and installations on or after the date of introduction of the Act. Congressional findings in the bill say the excise tax raises purchase costs, discourages replacement of older, dirtier vehicles, and disproportionately burdens electric and alternative‑fueled trucks; the bill makes conforming code changes so the excise tax and cross‑references are eliminated from federal tax law.
Introduced March 27, 2025 by Doug Lamalfa · Last progress March 27, 2025