Section 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”.
Fair Sharing of Highways and Roads for Electric Vehicles Act of 2025
A BILL
To amend the Internal Revenue Code of 1986 to establish a tax on the sale of electric vehicles and batteries.
Sec. 2 Tax on sale of electric vehicles and batteries
Imposition of tax—
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
“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.”
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:
Transfer of revenue to Highway Trust Fund— Section 9503(b)(1) of the Internal Revenue Code of 1986 is amended—
in subparagraph (D), by striking “and” at the end,
by redesignating subparagraph (E) as subparagraph (F), and
by inserting after subparagraph (D) the following new subparagraph:
“(E) section 4091 (relating to tax on electric vehicles and batteries), and”
Effective date— The amendments made by this section shall apply to sales after December 31, 2025.