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Version 00 · Introduced in House · Feb 12, 2025
Fair Sharing of Highways and Roads for Electric Vehicles Act of 2025
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 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.
Showing the opening paragraphs of the official summary.
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).
People & committees
Rep. Johnson, Dusty [R-SD-At Large] · R–SD
Legislative record
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Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
Source last updated: Dec 5, 2025. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-02-12 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
This bill would tax sales of covered electric vehicles by their manufacturers, producers, or importers at $1,000 per vehicle. It would also tax their sales of battery modules weighing more than 1,000 pounds at $550 each when intended for use in a covered electric vehicle. Hybrids combining a fuel-powered engine with rechargeable energy storage would be excluded.
(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.
(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.
Section 1 names the proposal the Fair Sharing of Highways and Roads for Electric Vehicles Act of 2025, or Fair SHARE Act of 2025.
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.
The proposed battery tax would be $550 per module weighing strictly more than 1,000 pounds, sold by its manufacturer, producer, or importer and intended for a covered electric vehicle. The bill uses the existing tax code definition of battery module without reproducing it.
(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.
(1) Battery module The term battery module has the same meaning given such term in section 45X(c)(5)(B)(iii).
The proposed vehicle tax would be $1,000 per covered vehicle sold by its manufacturer, producer, or importer. Coverage requires a gross vehicle weight rating below 8,500 pounds and compliance with referenced tax code requirements that are not reproduced in the bill.
(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.
(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).
(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.
Vehicles using both a fuel-consuming internal combustion or heat engine and rechargeable energy storage for propulsion would be excluded from the bill's electric vehicle definition.
(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.
The bill would direct revenue from the new taxes to the Highway Trust Fund by adding the new tax section to an existing tax code provision governing that fund.
(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 .
The proposed amendments would apply to sales after December 31, 2025. This is the proposal's effective-date language, not evidence that the taxes took effect.
(c) Effective date The amendments made by this section shall apply to sales after December 31, 2025.
The supplied December 5, 2025 source snapshot records introduction in the House and referral to the House Committee on Ways and Means on February 12, 2025.
Source snapshot updated 2025-12-05T22:50:19Z. 2025-02-12: Referred to the House Committee on Ways and Means. 2025-02-12: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-02-12. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy rider was identified in the complete supplied introduced text. This conclusion does not establish absence in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in accompanying materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
An express exclusion from the proposed tax's coverage warrants scrutiny as targeted treatment. This classification does not assess its justification.
Manufacturers, producers, and importers selling hybrids that combine a fuel-consuming engine with rechargeable energy storage would have those vehicles excluded from the proposed $1,000 electric vehicle tax. This exception directly concerns the bill's main taxing policy.
(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.
(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.
Full text preserved for this analysis. Legislative record snapshot: Dec 5, 2025. How PlainBill uses AI