Modern, Clean, and Safe Trucks Act of 2025

This bill would end the 12% federal retail excise tax on new heavy trucks, tractors, and trailers. The goal is to lower the upfront price of new, cleaner, and safer trucks and speed the replacement of older rigs. The bill’s findings say this tax adds $7,000 or more to a new trailer, $20,000 or more to a new clean diesel truck, and up to $50,000 for trucks with advanced engines, and note it is the highest percentage federal excise tax of its kind. The text repeals the part of the tax code that imposes this tax.

The findings also say newer trucks cut pollution and save fuel. A typical Class 8 truck with the latest clean diesel engine can save about 2,200 gallons of fuel each year, and 60 new trucks today emit about the same as one truck from 1988. The tax especially hits electric and alternative-fuel trucks, which cost more up front, at a time when faster adoption could help reduce emissions. The bill notes that money from this tax into the Highway Trust Fund can swing a lot year to year and says Congress should consider a more reliable funding source.

• Who is affected: Buyers of new heavy trucks, tractors, and trailers; truck makers, suppliers, and dealers; communities that benefit from cleaner, safer trucks.
• What changes: The 12% federal excise tax on these vehicles would be repealed, which could lower sticker prices by amounts equal to that tax.
• When: The change would apply to sales and installations on or after the day the bill was introduced.