Modern, Clean, and Safe Trucks Act of 2025
- Bill Number
- H.R. 2424
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-04-30: ASSUMING FIRST SPONSORSHIP - Mr. LaHood asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 2424, a bill originally introduced by Representative LaMalfa, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.
- Last Updated
- 2026-07-01T20:20:38Z
AI-Generated Summary
Purpose of the Legislation
The Modern, Clean, and Safe Trucks Act of 2025 aims to repeal the federal excise tax on new heavy trucks, tractors, and trailers. This is intended to lower costs for buyers, encourage the replacement of older vehicles with newer, more environmentally friendly and safer models, and support the transition to advanced technologies like electric and alternative-fueled trucks. The bill's findings highlight how the current tax, originally enacted in 1917 to fund World War I, now hinders modernization by adding significant costs (e.g., $7,000+ for trailers, up to $50,000 for advanced trucks) and disproportionately affects cleaner options.
Key Provisions
- Repeal of the Excise Tax: Eliminates Subchapter C of Chapter 31 in the Internal Revenue Code of 1986, which imposes a 12% retail excise tax (the highest rate among federal ad valorem taxes) on the first retail sale of heavy trucks (over 33,000 pounds gross vehicle weight), tractors, and trailers.
- Conforming Amendments: Updates related sections of the tax code to remove references to the repealed tax, including adjustments to definitions (e.g., tires used on highway vehicles), exemptions for tax-free sales, and provisions for refunds or credits. For example:
- Revises Section 4072(c) to clarify exclusions for tires on "mobile machinery" (specialized vehicles for construction, farming, etc., not used for general transport).
- Removes the tax from rules on tax-exempt sales, retailer definitions, and deposits into the Highway Trust Fund.
- Effective Date: Applies to sales and installations on or after March 27, 2025 (the date the bill was introduced).
Significant Changes to Existing Law
- Direct Repeal: Completely removes the 12% excise tax on heavy trucks and trailers, which has been in place since 1917 and generates variable revenue for the Highway Trust Fund based on annual sales.
- Broader Code Adjustments: Eliminates cross-references to the tax in over a dozen sections, streamlining the code but potentially requiring new revenue mechanisms for highway funding, as noted in the findings.
- No new taxes or offsets are introduced; the focus is solely on elimination to promote "modern, clean, and safe" vehicles.
Potential Impacts
- On Citizens and Businesses: Lowers upfront costs for purchasing new heavy-duty vehicles, making it easier for trucking companies and fleet owners to upgrade from older models (nearly half of Class 8 trucks are over 10 years old). This could save fuel (e.g., 2,200 gallons per truck annually), reduce emissions (e.g., 98% drop in nitrogen oxide and particulate matter since the 1990s), and support 1.3 million jobs in manufacturing, supply chains, dealerships, and trucking.
- On Government Agencies: Reduces revenue to the Highway Trust Fund, which relies on excise taxes for infrastructure funding; the bill suggests Congress should explore more stable alternatives. The IRS would see simplified administration with fewer tax collection and refund processes.
- On International Relations: Minimal direct impact, though promoting U.S. adoption of cleaner trucks could align with global efforts to reduce transportation emissions and support domestic manufacturing competitiveness.
- Environmental and Safety Benefits: Accelerates replacement of polluting older trucks (e.g., 60 modern trucks emit as much as one from 1988), potentially cutting carbon dioxide by millions of tons and saving billions of gallons of fuel, based on historical data cited.
Main Stakeholders Affected
- Trucking Industry and Manufacturers: Fleet operators, truck builders (e.g., for Class 8 vehicles), suppliers, and dealers benefit from lower costs and increased sales of advanced (including electric) trucks.
- Consumers and Businesses: Commercial users like farmers, miners, and logistics companies gain from affordable modern vehicles with better fuel efficiency and safety features.
- Government Entities: The Department of Transportation and IRS face administrative changes; highway funding agencies may need new revenue sources.
- Environmental Groups and Public: Indirect benefits from reduced emissions and safer roads, though potential short-term revenue loss could affect infrastructure projects.
Notable Legal, Constitutional, or Political Implications
- Legal: As a tax repeal, it simplifies the Internal Revenue Code without introducing new complexities, but the immediate effective date could lead to retroactive planning issues for sales near enactment. No challenges to constitutional authority (Congress has broad taxing and spending powers under Article I).
- Constitutional: Aligns with federal taxing authority; the bill's emphasis on environmental and safety advancements ties into the general welfare clause but does not raise separation-of-powers concerns.
- Political: Bipartisan sponsorship (e.g., by Reps. LaMalfa, Pappas, LaHood, Carbajal, and Miller) signals cross-party support for industry relief and green incentives. It could spark debates on Highway Trust Fund sustainability, potentially influencing future infrastructure bills, but avoids partisan framing in the text itself.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (12)
Rep. Pappas, Chris [D-NH-1], Rep. LaHood, Darin [R-IL-16], Rep. Carbajal, Salud O. [D-CA-24], Rep. Miller, Max L. [R-OH-7], Rep. Stefanik, Elise M. [R-NY-21], Rep. Hurd, Jeff [R-CO-3], Rep. Craig, Angie [D-MN-2], Rep. Perry, Scott [R-PA-10], Rep. Davis, Donald G. [D-NC-1], Rep. Van Orden, Derrick [R-WI-3], Rep. Yakym, Rudy [R-IN-2], Rep. Cuellar, Henry [D-TX-28]
Recent Actions
- 2026-04-30: ASSUMING FIRST SPONSORSHIP - Mr. LaHood asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 2424, a bill originally introduced by Representative LaMalfa, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.
- 2025-03-27: Referred to the House Committee on Ways and Means.
- 2025-03-27: Introduced in House
- 2025-03-27: Introduced in House
Bill Versions
- Modern, Clean, and Safe Trucks Act of 2025 — issued 2025-03-27 — PDF (7 pages)