[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 694 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                 S. 694

To amend the Internal Revenue Code of 1986 to repeal the excise tax on 
           heavy trucks and trailers, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 8, 2023

 Mr. Young (for himself and Mr. Cardin) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 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.
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