S. 536

119 S536 IS: Fair Sharing of Highways and Roads for Electric Vehicles Act of 2025
 U.S. Senate
 2025-02-12
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 536  IN THE SENATE OF THE UNITED STATES   February 12, 2025   Mrs. Fischer  (for herself,  Mr. Ricketts , and  Ms. Lummis ) 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 establish a tax on the sale of electric vehicles and batteries.
1.
Short title
This Act may be cited as the   Fair Sharing of Highways and Roads for Electric Vehicles Act of 2025   or the   Fair SHARE Act of 2025  .
2.
Tax on sale of electric vehicles and batteries
(a)
Imposition of tax
(1)
In general
Subchapter A of  chapter 32  of the Internal Revenue Code of 1986 is amended by adding at the end the following new part:
IV
Electric Vehicles and Batteries
Sec. 4091. Tax on Electric Vehicles and Batteries.
4091.
Tax on Electric Vehicles and batteries
(a)
Battery module
There is hereby imposed a tax equal to $550 on each battery module with a weight of greater than 1,000 pounds which is—
(1)
sold by the manufacturer, producer, or importer thereof, and
(2)
intended for use in an electric vehicle.
(b)
Electric vehicles
There is hereby imposed a tax equal to $1,000 on each electric vehicle sold by the manufacturer, producer, or importer thereof.
(c)
Definitions
In this section—
(1)
Battery module
The term  battery module  has the same meaning given such term in section 45X(c)(5)(B)(iii).
(2)
Electric vehicle
(A)
In general
The term  electric vehicle  means a light-duty vehicle which satisfies the requirements under section 30D(d)(1)(F).
(B)
Exception for hybrid vehicles
The term  electric vehicle  shall not include any motor vehicle which draws propulsion energy from onboard sources of stored energy which are both—
(i)
an internal combustion or heat engine using consumable fuel, and
(ii)
a rechargeable energy storage system.
(3)
Light-duty vehicle
The term  light-duty vehicle  means a motor vehicle, as defined in section 30D(d)(2), which has a gross vehicle weight rating of less than 8,500 pounds.
  .
(2)
Clerical amendment
The table of parts for subchapter A of  chapter 32  of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:
PART IV—ELECTRIC VEHICLES AND BATTERIES
  .
(b)
Transfer of revenue to Highway Trust Fund
 Section 9503(b)(1)  of the Internal Revenue Code of 1986 is amended—
(1)
in subparagraph (D), by striking  and  at the end,
(2)
by redesignating subparagraph (E) as subparagraph (F), and
(3)
by inserting after subparagraph (D) the following new subparagraph:
(E)
section 4091 (relating to tax on electric vehicles and batteries), and
 .
(c)
Effective date
The amendments made by this section shall apply to sales after December 31, 2025.