SEC. 2. TAX ON USE OF CERTAIN ELECTRIC HIGHWAY VEHI-
CLES TO FUND THE HIGHWAY TRUST FUND. 
(a) IMPOSITION OF TAX.—Chapter 1 of the Internal 
Revenue Code of 1986 is amended by inserting after sub-
chapter V the following new subchapter: 
‘‘Subchapter W—Use of Certain Electric 
Highway Vehicles 
‘‘SEC. 1400W–1. USE OF CERTAIN ELECTRIC HIGHWAY VEHI-
CLES. 
‘‘(a) IN GENERAL.—In the case of any person who 
uses any specified electric highway vehicle during the tax-
able year, the tax imposed by this chapter shall be in-
creased 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’ means— 
‘‘(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 para-
graph (2), the term ‘applicable mileage’ means, with 
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respect to any taxable year beginning in any cal-
endar year, the average number of miles driven by 
highway vehicles in the United States during the 
second preceding calendar year, as estimated by the 
Secretary after consultation with the Secretary of 
Transportation. 
‘‘(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 pur-
poses of this section— 
‘‘(1) SPECIFIED
ELECTRIC
HIGHWAY
VEHI-
CLE.—The term ‘specified electric highway vehicle’ 
means any highway motor vehicle (as defined in sec-
tion 4482(a)) which is propelled to a significant ex-
tent by an electric motor which draws electricity 
from a battery which— 
‘‘(A) has a capacity of not less than 4 kilo-
watt hours, and 
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‘‘(B) is capable of being recharged from an 
external source of electricity. 
‘‘(2) PLUG-IN
HYBRID
VEHICLE.—The term 
‘plug-in hybrid vehicle’ means any specified electric 
highway vehicle which includes an internal combus-
tion engine which is capable of recharging the bat-
tery described in paragraph (1). 
‘‘(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 por-
tion 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.— 
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‘‘(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 deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘2021’ for ‘2016’ in sub-
paragraph (A)(ii) thereof. 
‘‘(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 in-
formation as is identified in such agreement as in-
formation 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.’’. 
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(b) CERTAIN INCOME TAX CREDITS NOT ALLOWED 
TO OFFSET TAX.—Section 26(b)(2) of such Code is 
amended by striking ‘‘and’’ at the end of subparagraph 
(X), by striking the period at the end of subparagraph 
(Y), and by adding at the end the following new subpara-
graph: 
‘‘(Z) section 1400W–1 (relating to use of 
certain electric highway vehicles).’’. 
(c) TRANSFERS TO HIGHWAY TRUST FUND.—Sec-
tion 9503(b)(1) of such Code is amended by striking 
‘‘and’’ at the end of subparagraph (D), by striking the 
period at the end of subparagraph (E) and inserting ‘‘, 
and’’, and by inserting after subparagraph (E) the fol-
lowing new subparagraph: 
‘‘(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. 
Æ 
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