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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2882 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  1st Session
                                S. 2882

 To amend the Internal Revenue Code of 1986 to establish a tax on the 
                sale of electric vehicles and batteries.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 21, 2023

 Mrs. Fischer (for herself, Mr. Ricketts, Mr. Cornyn, 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.

    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 ``Stop EV Freeloading Act''.

SEC. 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:

               ``PART IV--ELECTRIC VEHICLES AND BATTERIES

``Sec. 4091. Tax on Electric Vehicles and Batteries.

``SEC. 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, 2023.
                                 <all>
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