| 1 | 1 | | II |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 536 |
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| 5 | 5 | | To amend the Internal Revenue Code of 1986 to establish a tax on the |
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| 6 | 6 | | sale of electric vehicles and batteries. |
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| 7 | 7 | | IN THE SENATE OF THE UNITED STATES |
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| 8 | 8 | | FEBRUARY12, 2025 |
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| 9 | 9 | | Mrs. F |
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| 10 | 10 | | ISCHER(for herself, Mr. RICKETTS, and Ms. LUMMIS) introduced the |
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| 11 | 11 | | following bill; which was read twice and referred to the Committee on Finance |
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| 12 | 12 | | A BILL |
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| 13 | 13 | | To amend the Internal Revenue Code of 1986 to establish |
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| 14 | 14 | | a tax on the sale of electric vehicles and batteries. |
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| 15 | 15 | | Be it enacted by the Senate and House of Representa-1 |
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| 16 | 16 | | tives of the United States of America in Congress assembled, 2 |
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| 17 | 17 | | SECTION 1. SHORT TITLE. 3 |
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| 18 | 18 | | This Act may be cited as the ‘‘Fair Sharing of High-4 |
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| 19 | 19 | | ways and Roads for Electric Vehicles Act of 2025’’ or the 5 |
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| 20 | 20 | | ‘‘Fair SHARE Act of 2025’’. 6 |
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| 21 | 21 | | SEC. 2. TAX ON SALE OF ELECTRIC VEHICLES AND BAT-7 |
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| 22 | 22 | | TERIES. 8 |
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| 23 | 23 | | (a) I |
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| 24 | 24 | | MPOSITION OFTAX.— 9 |
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| 25 | 25 | | VerDate Sep 11 2014 22:23 Mar 07, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S536.IS S536 |
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| 26 | 26 | | ssavage on LAPJG3WLY3PROD with BILLS 2 |
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| 27 | 27 | | •S 536 IS |
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| 28 | 28 | | (1) IN GENERAL.—Subchapter A of chapter 32 1 |
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| 29 | 29 | | of the Internal Revenue Code of 1986 is amended by 2 |
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| 30 | 30 | | adding at the end the following new part: 3 |
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| 31 | 31 | | ‘‘PART IV—ELECTRIC VEHICLES AND BATTERIES 4 |
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| 32 | 32 | | ‘‘Sec. 4091. Tax on Electric Vehicles and Batteries. |
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| 33 | 33 | | ‘‘SEC. 4091. TAX ON ELECTRIC VEHICLES AND BATTERIES. |
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| 34 | 34 | | 5 |
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| 35 | 35 | | ‘‘(a) B |
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| 36 | 36 | | ATTERYMODULE.—There is hereby imposed 6 |
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| 37 | 37 | | a tax equal to $550 on each battery module with a weight 7 |
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| 38 | 38 | | of greater than 1,000 pounds which is— 8 |
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| 39 | 39 | | ‘‘(1) sold by the manufacturer, producer, or im-9 |
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| 40 | 40 | | porter thereof, and 10 |
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| 41 | 41 | | ‘‘(2) intended for use in an electric vehicle. 11 |
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| 42 | 42 | | ‘‘(b) E |
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| 43 | 43 | | LECTRICVEHICLES.—There is hereby imposed 12 |
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| 44 | 44 | | a tax equal to $1,000 on each electric vehicle sold by the 13 |
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| 45 | 45 | | manufacturer, producer, or importer thereof. 14 |
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| 46 | 46 | | ‘‘(c) D |
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| 47 | 47 | | EFINITIONS.—In this section— 15 |
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| 48 | 48 | | ‘‘(1) B |
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| 49 | 49 | | ATTERY MODULE .—The term ‘battery 16 |
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| 50 | 50 | | module’ has the same meaning given such term in 17 |
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| 51 | 51 | | section 45X(c)(5)(B)(iii). 18 |
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| 52 | 52 | | ‘‘(2) E |
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| 53 | 53 | | LECTRIC VEHICLE.— 19 |
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| 54 | 54 | | ‘‘(A) I |
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| 55 | 55 | | N GENERAL.—The term ‘electric ve-20 |
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| 56 | 56 | | hicle’ means a light-duty vehicle which satisfies 21 |
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| 57 | 57 | | the requirements under section 30D(d)(1)(F). 22 |
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| 58 | 58 | | ‘‘(B) E |
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| 59 | 59 | | XCEPTION FOR HYBRID VEHI -23 |
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| 60 | 60 | | CLES.—The term ‘electric vehicle’ shall not in-24 |
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| 61 | 61 | | VerDate Sep 11 2014 22:23 Mar 07, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S536.IS S536 |
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| 62 | 62 | | ssavage on LAPJG3WLY3PROD with BILLS 3 |
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| 63 | 63 | | •S 536 IS |
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| 64 | 64 | | clude any motor vehicle which draws propulsion 1 |
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| 65 | 65 | | energy from onboard sources of stored energy 2 |
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| 66 | 66 | | which are both— 3 |
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| 67 | 67 | | ‘‘(i) an internal combustion or heat 4 |
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| 68 | 68 | | engine using consumable fuel, and 5 |
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| 69 | 69 | | ‘‘(ii) a rechargeable energy storage 6 |
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| 70 | 70 | | system. 7 |
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| 71 | 71 | | ‘‘(3) L |
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| 72 | 72 | | IGHT-DUTY VEHICLE.—The term ‘light- 8 |
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| 73 | 73 | | duty vehicle’ means a motor vehicle, as defined in 9 |
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| 74 | 74 | | section 30D(d)(2), which has a gross vehicle weight 10 |
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| 75 | 75 | | rating of less than 8,500 pounds.’’. 11 |
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| 76 | 76 | | (2) C |
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| 77 | 77 | | LERICAL AMENDMENT .—The table of 12 |
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| 78 | 78 | | parts for subchapter A of chapter 32 of the Internal 13 |
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| 79 | 79 | | Revenue Code of 1986 is amended by adding at the 14 |
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| 80 | 80 | | end the following new item: 15 |
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| 81 | 81 | | ‘‘PART IV—ELECTRIC VEHICLES AND BATTERIES’’. |
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| 82 | 82 | | (b) TRANSFER OFREVENUE TOHIGHWAYTRUST 16 |
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| 83 | 83 | | F |
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| 84 | 84 | | UND.—Section 9503(b)(1) of the Internal Revenue Code 17 |
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| 85 | 85 | | of 1986 is amended— 18 |
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| 86 | 86 | | (1) in subparagraph (D), by striking ‘‘and’’ at 19 |
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| 87 | 87 | | the end, 20 |
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| 88 | 88 | | (2) by redesignating subparagraph (E) as sub-21 |
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| 89 | 89 | | paragraph (F), and 22 |
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| 90 | 90 | | (3) by inserting after subparagraph (D) the fol-23 |
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| 91 | 91 | | lowing new subparagraph: 24 |
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| 92 | 92 | | VerDate Sep 11 2014 22:23 Mar 07, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S536.IS S536 |
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| 93 | 93 | | ssavage on LAPJG3WLY3PROD with BILLS 4 |
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| 94 | 94 | | •S 536 IS |
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| 95 | 95 | | ‘‘(E) section 4091 (relating to tax on elec-1 |
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| 96 | 96 | | tric vehicles and batteries), and’’. 2 |
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| 97 | 97 | | (c) E |
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| 98 | 98 | | FFECTIVEDATE.—The amendments made by 3 |
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| 99 | 99 | | this section shall apply to sales after December 31, 2025. 4 |
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| 100 | 100 | | Æ |
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| 101 | 101 | | VerDate Sep 11 2014 22:23 Mar 07, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S536.IS S536 |
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| 102 | 102 | | ssavage on LAPJG3WLY3PROD with BILLS |
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