Bldg Materials Update: Not Celebrating a Gas Tax Holiday

Research evidence excerpt

Bldg Materials Update: Not Celebrating a Gas Tax Holiday

Equity Research

Industry Update — May 12, 2026

Construction Materials

Bldg Materials Update: Not Celebrating a Gas

Tax Holiday

Our Call Timna Tanners

Several state gas tax holidays and a possible federal fuel tax reprieve are at a minimum Equity Analyst | Wells Fargo Securities, LLC

Timna.Tanners@wellsfargo.com | 212-214-5437

bad optics for road construction, and at worst a threat to public infrastructure demand.

Matt Dushkin, CPAWe stay Equal Weight MLM, VMC and Underweight KNF.

Associate Equity Analyst | Wells Fargo Securities, LLC

Matt.B.Dushkin@wellsfargo.com | 713-320-7199

Gas tax holiday a risk. President Trump this week proposed a federal gas tax holiday

to contain inflation from a surge in oil since the Iran War began late Feb. About 20% of

Exhibit 1 - U.S. highway and pavementhighway spending is federally funded, largely via gas taxes and General Fund backstops.

awards ($M)While the move needs congressional approval, and we doubt any near-term impact on

road spending committed through IIJA's Sept expiration, it's at a minimum bad optics into $10,000

IIJA's successor and at worst could threaten funding levels ahead. $8,000

$6,000

More show than substance. Gas tax holidays historically have offered limited relief at $4,000

the pump, but could jeopardize road spending funds, in our view. Several states already $2,000

suspended fuel taxes recently—GA, UT, KY, IN—with unclear impact on road funding. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

State gas taxes have become an increasingly large component of infrastructure spending 2020 2021 2022 2023

with the federal tax stuck at $0.184/gal since 1993. Unfortunately, fuel tax pushback from 2024 2025 2026