USER FEE Act

To amend the Internal Revenue Code of 1986 to impose a tax on the use of certain electric highway vehicles to fund the Highway Trust Fund. 1. Short title This Act may be cited as the Using Sustainable Energy Resources to Fund Equitable e-Transportation Act USER FEE Act 2. Tax on use of certain electric highway vehicles to fund the Highway Trust Fund (a) Imposition of tax Chapter 1 W Use of certain electric highway vehicles 1400W–1. Use of certain electric highway vehicles (a) In general In the case of any person who uses any specified electric highway vehicle during the taxable year, the tax imposed by this chapter shall be increased with respect to each such vehicle by the product of— (1) the applicable rate of tax, multiplied by (2) the applicable mileage. (b) Applicable rate of tax For purposes of this section, the term applicable rate of tax (1) in the case of any plug-in hybrid vehicle, 1 cent, and (2) in the date of any other specified electric highway vehicle, 2 cents. (c) Applicable mileage For purposes of this section— (1) In general Except as provided in paragraph (2), the term applicable mileage (2) Election to use actual mileage In the case of a taxpayer which elects the application of this paragraph with respect to any vehicle for any taxable year, the applicable mileage with respect to such vehicle shall be the number of miles driven by such vehicle during such taxable year if the taxpayer provides or maintains such documentation as the Secretary may require. (d) Electric vehicle definitions For purposes of this section— (1) Specified electric highway vehicle The term specified electric highway vehicle (A) has a capacity of not less than 4 kilowatt hours, and (B) is capable of being recharged from an external source of electricity. (2) Plug-in hybrid vehicle The term plug-in hybrid vehicle (e) Rules related to use (1) Ownership treated as use Except as otherwise provided by the Secretary, the registered owner of any specified electric highway vehicle shall be treated for purposes of this section as the user of such vehicle. (2) Proration In the case of any person who demonstrates to the Secretary in such manner as the Secretary may provide that such person was not the registered owner of such vehicle for any portion of the taxable year, the tax determined under subsection (a) shall bear the same ratio to such tax (determined without regard to this paragraph) as— (A) the portion of such taxable year for which such person was the registered owner of such vehicle, bears to (B) the entire taxable year. (f) Inflation adjustment (1) In general In the case of any taxable year beginning after December 31, 2022, the 1 cent amount in subsection (b)(1) and the 2 cents amount in subsection (b)(2) shall each be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2021 2016 (2) Rounding Any increase determined under paragraph (1) shall be rounded to the nearest multiple of 0.1 cents. (g) Authority To enter into information and revenue sharing agreements The Secretary may enter into an agreement with any State under which— (1) such State provides the Secretary such information as is identified in such agreement as information which the Secretary has determined would aid in the administration and enforcement of this section, and (2) the Secretary agrees to make payments to such State of a portion of the revenue collected under this section. . (b) Certain income tax credits not allowed To offset tax Section 26(b)(2) of such Code is amended by striking and (Z) section 1400W–1 (relating to use of certain electric highway vehicles). . (c) Transfers to highway trust fund Section 9503(b)(1) of such Code is amended by striking and , and (F) section 1400W–1 (relating to use of certain electric highway vehicles), determined after application of subsection (f)(2) thereof. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021.

Summary: Using Sustainable Energy Resources to Fund Equitable e-Transportation Act or the USER FEE Act This bill imposes an additional tax on the use of a specified electric highway vehicle (i.e., any highway motor vehicle, including a plug-in hybrid vehicle, that is propelled to a significant extent by an electric motor drawing electricity from a rechargeable battery that has a capacity of not less than four kilowatt hours). The bill requires the tax revenues generated by this bill to be transferred to the Highway Trust Fund.