Trucking Tax Relief Act of 2027

---

Explanation:

The federal excise tax on heavy trucks and trailers started in 1917 to help fund World War I. It was later set at 12 percent in 1982. Today, this tax brings in only 3 to 4 percent of the Highway Trust Fund’s

revenue, the vast majority comes from the 24.4 cent federal tax on diesel fuel.

This outdated 12 percent tax makes new trucks far more expensive, hurts small trucking companies, and discourages fleets from buying safer, cleaner equipment. It’s time to repeal it.

120th Congress

1st Session

S. ___

To repeal the excise tax on heavy trucks, tractors, trailers, and tires.

IN THE SENATE OF THE UNITED STATES

Mrs. Perkins introduced the following bill which was read twice and referred to the Committee on

Finance.

A BILL

To repeal the retail excise tax imposed on heavy trucks, tractors, trailers, and tires under section 4051

of the Internal Revenue Code of 1986, 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 “Trucking Tax Relief Act of 2027”.

SECTION 2. FINDINGS.

Congress finds the following:

(1) A federal excise tax on trucks and tires was first enacted in 1917 to help finance World War I.

(2) That tax was increased to its current 12 percent rate by the Highway Revenue Act of 1982,

effective April 1, 1983, and has remained at 12 percent ever since.

(3) The tax currently generates only 3 to 4 percent of total federal highway revenues deposited into

the Highway Trust Fund, with the remaining 96 to 97 percent coming from federal fuel taxes.

(4) The 12 percent tax increases the cost of new heavy-duty trucks by thousands of dollars,

discourages investment in safer, cleaner, and more fuel-efficient vehicles, and places a heavy

compliance burden on American trucking companies.

SECTION 3. REPEAL OF EXCISE TAX ON HEAVY TRUCKS AND TRAILERS.

(a) In General. Section 4051 of the Internal Revenue Code of 1986 is amended by striking subsections

(a) through (c) and redesignating subsequent subsections accordingly.

(b) Effective Date. The amendments made by this section shall apply to sales after December 31,

2027.