Fair SHARE Act of 2025

Bill: 119-s-536
Sponsor: full_name: Sen. Fischer, Deb [R-NE]
Introduced: 2025-02-12
Policy area: Taxation
Latest action: action_date: 2025-02-12
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2025-02-12
action_desc: Introduced in Senate
text: <p><strong>Fair Sharing of Highways and Roads for Electric Vehicles&nbsp;Act of 2025</strong></p><p>This bill imposes a new excise tax in the amount of $1,000 on the sale of an electric vehicle and a new excise tax in the amount of $550 on the sale of a battery module weighing over 1,000 pounds for use in an electric vehicle. The bill also requires the Department of the Treasury to transfer amounts collected from the new excise taxes to the Highway Trust Fund. (The Highway Trust Fund, which supports surface transportation programs and projects, is funded by transportation-related&nbsp;excise&nbsp;taxes.)</p><p>The bill defines <em>electric vehicle</em> as a light-duty vehicle (a motor vehicle weighing less than 8,500 pounds that is manufactured for use on public roads) that is powered by a battery with a capacity of at least seven kilowatt hours and is recharged through an external source of electricity. Under the bill, the excise tax&nbsp;does not apply to hybrid vehicles, which are powered by a combination of fuel and a rechargeable energy storage system.</p><p>The bill defines <em>battery module</em> as a module with&nbsp;two or more battery cells configured to create voltage or current (or no battery cells) and with an aggregate capacity of at least seven kilowatt hours (or one kilowatt hour for a hydrogen fuel cell vehicle).&nbsp;</p>

tv_txt: 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.