119-s536

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 536 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 536

 To amend the Internal Revenue Code of 1986 to establish a tax on the 
 sale of electric vehicles and batteries.

_______________________________________________________________________

 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.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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''.

SEC. 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:

 ``PART IV--ELECTRIC VEHICLES AND BATTERIES

``

Sec. 4091. Tax on Electric Vehicles and Batteries.

``

SEC. 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.
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