Modern, Clean, and Safe Trucks Act of 2023
This bill repeals the 12% excise tax on the retail sale of heavy trucks and trailers.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1440 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 1440
To amend the Internal Revenue Code of 1986 to repeal the excise tax on
heavy trucks and trailers, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 8, 2023
Mr. LaMalfa (for himself, Mr. Pappas, Mr. LaHood, and Mr. Blumenauer)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to repeal the excise tax on
heavy trucks and trailers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Modern, Clean, and Safe Trucks Act
of 2023''.
SEC. 2. FINDINGS.
Congress finds that--
(1) the 12-percent Federal retail excise tax on certain new
heavy trucks, tractors, and trailers, coupled with new
regulatory mandates, significantly increases the cost of new
heavy-duty trucks, tractors, and trailers and discourages the
replacement of older, less environmentally clean and less fuel
economical vehicles;
(2) this 12-percent Federal retail excise tax is the
highest percentage rate of any Federal ad valorem excise tax;
(3) the Federal excise tax was first levied by Congress in
1917 to help finance America's involvement in World War I;
(4) the 12-percent Federal retail excise tax routinely adds
between $12,000 and $22,000 to the cost of a new heavy truck,
tractor, or trailer;
(5) nearly half of the Class 8 trucks on the road are over
10 years old and lack a decade of environmental and safety
technological advancements;
(6) from 2007 to 2020, new trucks have reduced carbon
dioxide emissions by 202,000,000 tons, nitrogen oxide emissions
by 27,000,000 tons, and saved 20,000,000,000 gallons of diesel
and 472,000,000 barrels of crude oil;
(7) an owner of a single Class 8 truck powered by the
latest clean diesel engine can expect to save about 2,200
gallons of fuel each year compared to previous generations of
technology;
(8) since the late 1990s, cleaner fuel and advanced engines
have combined to reduce nitrogen oxide (NO<INF>x</INF>)
emissions and particulate matter (PM) emissions by 98 percent;
(9) the Federal excise tax disproportionately impacts
electric and alternative-fueled trucks, which currently have a
higher up front cost, at a time when adoption of these
technologies is needed to accelerate the transition to zero
emission vehicles and the reduction of carbon pollution from
transportation;
(10) in 2020, there were approximately 1,300,000 United
States manufacturing, supplier, dealership, and heavy-duty
trucking and trailer related jobs;
(11) since the Federal retail excise tax on certain new
heavy trucks, tractors, and trailers is based on annual sales,
receipts from the tax deposited in the Highway Trust Fund can
vary greatly;
(12) Congress should consider a more reliable and
consistent revenue mechanism to fund the Highway Trust Fund;
(13) Congress should advance the deployment of the most
modern, clean, and safe trucks through eliminating the Federal
excise tax on trucks; and
(14) repealing the Federal excise tax would result in the
replacement of older internal combustion engine trucks with new
heavy duty trucks that employ the latest safety and
environmental technologies.
SEC. 3. REPEAL OF EXCISE TAX ON HEAVY TRUCKS AND TRAILERS.
(a) In General.--Chapter 31 of the Internal Revenue Code of 1986 is
amended by striking subchapter C (and by striking the item relating to
such subchapter from the table of subchapters for such chapter).
(b) Conforming Amendments.--
(1) Section 4072(c) of such Code is amended to read as
follows:
``(c) Tires of the Type Used on Highway Vehicles.--
``(1) In general.--For purposes of this part, the term
`tires of the type used on highway vehicles' means tires of the
type used on--
``(A) motor vehicles which are highway vehicles, or
``(B) vehicles of the type used in connection with
motor vehicles which are highway vehicles.
``(2) Exception for mobile machinery.--
``(A) In general.--Such term shall not include
tires of a type used exclusively on mobile machinery.
``(B) Mobile machinery.--For purposes of
subparagraph (A), the term `mobile machinery' means any
vehicle which consists of a chassis--
``(i) to which there has been permanently
mounted (by welding, bolting, riveting, or
other means) machinery or equipment to perform
a construction, manufacturing, processing,
farming, mining, drilling, timbering, or
similar operation if the operation of the
machinery or equipment is unrelated to
transportation on or off the public highways,
``(ii) which has been specially designed to
serve only as a mobile carriage and mount (and
a power source, where applicable) for the
particular machinery or equipment involved,
whether or not such machinery or equipment is
in operation, and
``(iii) which, by reason of such special
design, could not, without substantial
structural modification, be used as a component
of a vehicle designed to perform a function of
transporting any load other than that
particular machinery or equipment or similar
machinery or equipment requiring such a
specially designed chassis.''.
(2) Section 4221 of such Code is amended--
(A) in subsection (a)--
(i) by striking ``(or under subchapter C of
chapter 31 on the first retail sale)'', and
(ii) by striking ``4051 or'',
(B) in subsection (c), by striking ``and in the
case of any article sold free of tax under section
4053(6),'', and
(C) in subsection (d)(1), by striking ``, and, in
the case of the taxes imposed by subchapter C of
chapter 31, includes the retailer with respect to the
first retail sale''.
(3) Section 4222(d) of such Code is amended by striking
``4053(6),''.
(4) Section 4293 of such Code is amended by striking
``section 4051,''.
(5) Section 4483(g) of such Code is amended by striking
``section 4053(8)'' and inserting ``section 4072(c)(2)''.
(6) Section 6416(b)(2) of such Code is amended by striking
``or under section 4051''.
(7) Section 6416(b) of such Code is amended by striking
paragraph (6).
(8) Section 9503(b)(1) of such Code is amended by striking
subparagraph (B) and by redesignating subparagraphs (C), (D),
and (E) as subparagraphs (B), (C), and (D), respectively.
(c) Effective Date.--The amendments made by this section shall
apply to sales and installations on or after the date of the
introduction of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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