Bill > S536

This bill introduces a new tax on electric vehicles (EVs) and their battery modules, aimed at generating revenue for the Highway Trust Fund. Specifically, the bill imposes a $550 tax on each battery module weighing over 1,000 pounds intended for use in an electric vehicle, and a $1,000 tax on each electric vehicle sold by manufacturers, producers, or importers. The definition of an electric vehicle excludes hybrid vehicles that use both an internal combustion engine and a rechargeable energy storage system, and applies only to light-duty vehicles weighing less than 8,500 pounds. The tax would take effect on January 1, 2026, and the revenue collected would be transferred to the Highway Trust Fund, which supports infrastructure and road maintenance. The bill, formally known as the Fair Sharing of Highways and Roads for Electric Vehicles Act of 2025 (Fair SHARE Act), appears to be designed to ensure that electric vehicle owners contribute to road maintenance costs, potentially addressing concerns about reduced gas tax revenue as more vehicles shift away from traditional fossil fuels.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/536/all-info