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Fair SHARE Act of 2025
3/12/2025, 8:23 AM
Summary of Bill HR 1253
The tax would be applied to the sale of electric vehicles and batteries at the point of sale, with the amount of the tax determined based on the value of the vehicle or battery being sold. The revenue generated from this tax would be used to fund various government programs and initiatives.
Supporters of the bill argue that the tax on electric vehicles and batteries is necessary to ensure that all vehicles contribute to the maintenance of infrastructure and other government services. They also believe that the tax would help level the playing field between electric vehicles and traditional gasoline-powered vehicles. Opponents of the bill, however, argue that the tax would discourage consumers from purchasing electric vehicles, which are seen as a more environmentally friendly alternative to traditional vehicles. They also argue that the tax could hinder the growth of the electric vehicle market and slow down the transition to cleaner transportation options. Overall, the Electric Vehicle Tax Act is a controversial piece of legislation that has sparked debate among lawmakers and the public. It remains to be seen whether the bill will ultimately be passed into law and how it will impact the electric vehicle market in the United States.
Congressional Summary of HR 1253
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.
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).
