II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stop EV Freeloading 

5 Act’’. 

6 SEC. 2. TAX ON SALE OF ELECTRIC VEHICLES AND BAT7 TERIES. 

8 (a) IMPOSITION OF TAX.— 


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•S 2882 IS

1 (1) IN GENERAL.—Subchapter A of chapter 32 

2 of the Internal Revenue Code of 1986 is amended by 

3 adding at the end the following new part: 

4 ‘‘PART IV—ELECTRIC VEHICLES AND BATTERIES 

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

5 ‘‘SEC. 4091. TAX ON ELECTRIC VEHICLES AND BATTERIES. 

6 ‘‘(a) BATTERY MODULE.—There is hereby imposed 

7 a tax equal to $550 on each battery module with a weight 

8 of greater than 1,000 pounds which is— 

9 ‘‘(1) sold by the manufacturer, producer, or im10 porter thereof, and 

11 ‘‘(2) intended for use in an electric vehicle. 

12 ‘‘(b) ELECTRIC VEHICLES.—There is hereby imposed 

13 a tax equal to $1,000 on each electric vehicle sold by the 

14 manufacturer, producer, or importer thereof. 

15 ‘‘(c) DEFINITIONS.—In this section— 

16 ‘‘(1) BATTERY MODULE.—The term ‘battery 

17 module’ has the same meaning given such term in 

18 section 45X(c)(5)(B)(iii). 

19 ‘‘(2) ELECTRIC VEHICLE.— 

20 ‘‘(A) IN GENERAL.—The term ‘electric ve21 hicle’ means a light-duty vehicle which satisfies 

22 the requirements under section 30D(d)(1)(F). 

23 ‘‘(B) EXCEPTION FOR HYBRID VEHI24 CLES.—The term ‘electric vehicle’ shall not inVerDate Sep 11 2014 04:11 Sep 23, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2882.IS S2882

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•S 2882 IS

1 clude any motor vehicle which draws propulsion 

2 energy from onboard sources of stored energy 

3 which are both— 

4 ‘‘(i) an internal combustion or heat 

5 engine using consumable fuel, and 

6 ‘‘(ii) a rechargeable energy storage 

7 system. 

8 ‘‘(3) LIGHT-DUTY VEHICLE.—The term ‘light9 duty vehicle’ means a motor vehicle, as defined in 

10 section 30D(d)(2), which has a gross vehicle weight 

11 rating of less than 8,500 pounds.’’. 

12 (2) CLERICAL AMENDMENT.—The table of 

13 parts for subchapter A of chapter 32 of the Internal 

14 Revenue Code of 1986 is amended by adding at the 

15 end the following new item: 

‘‘PART IV—ELECTRIC VEHICLES AND BATTERIES’’. 

16 (b) TRANSFER OF REVENUE TO HIGHWAY TRUST

17 FUND.—Section 9503(b)(1) of the Internal Revenue Code 

18 of 1986 is amended— 

19 (1) in subparagraph (D), by striking ‘‘and’’ at 

20 the end, 

21 (2) by redesignating subparagraph (E) as sub22 paragraph (F), and 

23 (3) by inserting after subparagraph (D) the fol24 lowing new subparagraph: 


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•S 2882 IS

1 ‘‘(E) section 4091 (relating to tax on elec2 tric vehicles and batteries), and’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to sales after December 31, 2023. 

Æ 


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