Modern, Clean, and Safe Trucks Act of 2026
- Bill Number
- S. 4657
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-06-02: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-07-01T20:20:50Z
AI-Generated Summary
Purpose This legislation amends the Internal Revenue Code of 1986 to repeal the federal excise tax on heavy trucks, tractors, and trailers. It seeks to lower the cost of new heavy-duty vehicles, encourage fleet modernization, and support cleaner, safer, and more fuel-efficient trucks.
Key Provisions
- Repeals the 12-percent federal retail excise tax on new heavy trucks, tractors, and trailers by eliminating Subchapter C of Chapter 31 of the Internal Revenue Code.
- Makes conforming amendments to related tax code sections, including updates to definitions for tires used on highway vehicles, exemptions, and references in sections such as 4221, 4222, 4293, 4483, 6416, and 9503.
- Applies the repeal to sales and installations occurring on or after the date of enactment.
- Includes congressional findings on the tax's history, its impact on vehicle costs and emissions reductions, and the need for a more stable funding source for the Highway Trust Fund.
Significant Changes to Existing Law
- Eliminates the highest-rate federal ad valorem excise tax currently applied to heavy trucks and trailers.
- Removes the tax's contribution to Highway Trust Fund revenue and adjusts related code provisions that reference the repealed tax.
- Updates definitions and cross-references to maintain consistency in tire taxation and other excise rules without the heavy-vehicle provisions.
Potential Impacts
- Government agencies: Reduces revenue collected by the Internal Revenue Service and deposited into the Highway Trust Fund, potentially requiring alternative funding mechanisms.
- Citizens and businesses: Lowers purchase prices for new heavy-duty trucks and trailers by amounts ranging from thousands to tens of thousands of dollars per unit.
- International relations: No direct effects identified in the legislation.
Main Stakeholders Affected
- Heavy-duty truck and trailer manufacturers, suppliers, and dealerships.
- Trucking companies and fleet operators.
- Employees in manufacturing, supply, dealership, and heavy-duty trucking sectors.
- The Department of the Treasury and Highway Trust Fund administrators.
Notable Legal, Constitutional, or Political Implications
- Represents standard tax legislation within Congress's authority under the Constitution to lay and collect taxes.
- May shift reliance for Highway Trust Fund financing away from variable excise tax receipts toward other revenue sources.
- Focuses on domestic transportation policy without altering international trade or treaty obligations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Sen. Alsobrooks, Angela D. [D-MD]
Recent Actions
- 2026-06-02: Read twice and referred to the Committee on Finance.
- 2026-06-02: Introduced in Senate
Bill Versions
- Modern, Clean, and Safe Trucks Act of 2026 — issued 2026-06-02 — PDF (7 pages)