Fair SHARE Act of 2025
Fair SHARE Act of 2025
Plain Language Summary
# Fair SHARE Act of 2025 Summary **What the Bill Would Do:** The Fair SHARE Act would impose new federal taxes on electric vehicles and large batteries. Specifically, it would add a $1,000 excise tax (a type of sales tax) on each new electric vehicle sold and a $550 tax on battery modules weighing over 1,000 pounds. The money collected from these taxes would go into the Highway Trust Fund, which pays for road construction, maintenance, and other surface transportation projects.
Hybrid vehicles (which use both gas and electric power) would not be subject to these new taxes. **Who It Affects:** This bill would primarily affect consumers buying new electric vehicles, making them more expensive at the point of sale. EV manufacturers and battery producers could also be impacted. The bill's supporters argue it would help address the fact that electric vehicle owners don't pay gas taxes, which traditionally fund highway maintenance—since gas taxes apply only to gasoline-powered cars. **Current Status:** The bill is currently in committee (S 536 in the Senate) and has not yet been voted on or passed.
CRS Official Summary
Fair Sharing of Highways and Roads for Electric Vehicles Act of 2025This 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 excise taxes.)The bill defines electric vehicle 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 does not apply to hybrid vehicles, which are powered by a combination of fuel and a rechargeable energy storage system.The bill defines battery module as a module with 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).
Latest Action
Read twice and referred to the Committee on Finance.