Modern, Clean, and Safe Trucks Act of 2026

This bill repeals the federal excise tax on heavy trucks and trailers, which is currently 12% of the retail price, to encourage the replacement of older vehicles with newer, cleaner, and safer models. It makes related changes to the Internal Revenue Code to remove references to this tax and adjust other provisions accordingly. The repeal applies to sales and installations on or after the date the bill becomes law.

Sec. 2, Findings: Congress lists reasons for the repeal, including that the 12% tax is the highest federal ad valorem excise tax, adds thousands of dollars to vehicle costs, discourages fleet modernization, and disproportionately affects electric and alternative-fuel trucks. It notes that newer trucks reduce emissions and fuel use significantly, and that the tax revenue for the Highway Trust Fund is unreliable.

Sec. 3, Repeal of excise tax on heavy trucks and trailers: This section removes subchapter C from chapter 31 of the Internal Revenue Code, which imposes the excise tax on heavy trucks and trailers. It also updates related sections, such as redefining tires for highway vehicles, adjusting exemptions for mobile machinery, and removing references to the repealed tax in other parts of the code. The effective date is the date of enactment.