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 certain EV batteries. Specifically, it would add a $1,000 tax on each electric vehicle sold and a $550 tax on large battery modules (over 1,000 pounds) used in electric vehicles. The money collected from these taxes would go directly to the Highway Trust Fund, which pays for road construction and maintenance projects nationwide. **Who it affects:** The bill would primarily impact consumers who purchase electric vehicles, as the tax would likely be passed along through higher prices. It would also affect manufacturers and sellers of electric vehicles and large EV battery components.
The bill does not apply to hybrid vehicles, which use both gasoline engines and rechargeable batteries. **Current status and key details:** As of now, the bill is in committee and has not advanced further in Congress. The stated purpose is to ensure electric vehicle owners contribute to highway funding similar to how gasoline taxes fund roads. Critics might argue the tax discourages EV adoption, while supporters contend it's a fair way to fund infrastructure from all vehicle types.
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
Referred to the House Committee on Ways and Means.