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Where This Stands

Introduced
Committee
Floor Vote
Passed
Signed

Currently in_committee. The next step in the legislative lifecycle is Floor Vote.

Last action
Read twice and referred to the Committee on Finance.Mar 8, 2023
Lead sponsor

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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The Frame

What this does

If passed, this bill would reduce the purchase price of new heavy-duty trucks by $12,000 to $22,000, potentially accelerating the adoption of newer, cleaner, and safer vehicle technology across the trucking industry.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Trucking and logistics companies

These companies would face lower upfront capital costs when purchasing new heavy-duty vehicles.

Heavy-duty truck manufacturers

Manufacturers may see changes in demand for new vehicles due to the reduction in retail price.

Highway Trust Fund administrators

The fund would lose a specific stream of tax revenue, necessitating a search for alternative funding sources.

What changed

Current stage: in_committee.

What's next

Floor Vote.

Summary

This bill proposes the repeal of the 12-percent federal retail currently applied to the purchase of new heavy-duty trucks, tractors, and trailers. The legislation aims to lower the cost of new vehicles to encourage the replacement of older, less fuel-efficient, and less environmentally friendly trucks.

Why It Matters

If passed, this bill would reduce the purchase price of new heavy-duty trucks by $12,000 to $22,000, potentially accelerating the adoption of newer, cleaner, and safer vehicle technology across the trucking industry.

Key Facts

  • The bill repeals the 12-percent federal retail excise tax on new heavy trucks, tractors, and trailers.
  • The tax repeal applies to all sales and installations occurring on or after March 8, 2023.
  • The 12-percent tax currently adds between $12,000 and $22,000 to the cost of a new heavy vehicle.
  • The bill includes technical amendments to the Internal Revenue Code to remove references to the repealed tax.
  • The bill clarifies the definition of 'tires of the type used on highway vehicles' and provides an exception for mobile machinery.
  • The legislation aims to address the fact that nearly half of Class 8 trucks on U.S. roads are over 10 years old.
  • The bill notes that the excise tax disproportionately impacts the cost of electric and alternative-fueled trucks.
  • The bill suggests that Congress should identify a more reliable revenue source for the Highway Trust Fund to replace the lost excise tax revenue.

Frequently Asked Questions

How much would this save on a new truck purchase?
According to the bill's findings, the 12-percent tax currently adds between $12,000 and $22,000 to the cost of a new heavy truck, tractor, or trailer.
Why is this tax being repealed?
The sponsors argue that the tax discourages the purchase of newer, cleaner, and safer trucks, and that it disproportionately increases the cost of electric and alternative-fueled vehicles.
Does this affect the Highway Trust Fund?
Yes, the bill acknowledges that the is a source of revenue for the Highway Trust Fund and suggests that Congress should consider a more consistent revenue mechanism to replace it.

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Sponsors

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Shift in Environmental Policy

The bill explicitly links the repeal of a long-standing tax (dating to 1917) to modern environmental goals, specifically the transition to zero-emission vehicles.

Connected Entities

personBen CardinUnited States Senator who co-sponsored the bill.Map →
personTodd YoungUnited States Senator who introduced the bill.Map →
organizationHighway Trust FundThe federal fund that currently receives revenue from the excise tax on heavy trMap →

Sources

Open source document

www.congress.gov

Analysis Score

0–100
  • Significance75
    How much this matters to a regular citizen
  • Controversy40
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz30
    Current news / social attention level

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