The Fair SHARE Act imposes a 1,000 dollar excise tax on electric vehicle sales and 550 dollars on heavy battery modules to fund the Highway Trust Fund. This addresses the concern that EV owners avoid gas taxes that fund road infrastructure.
Latest Action
Referred to the House Committee on Ways and Means.
AI Summary
Plain-English explanation of this bill
The Fair SHARE Act imposes a 1,000 dollar excise tax on electric vehicle sales and 550 dollars on heavy battery modules to fund the Highway Trust Fund. This addresses the concern that EV owners avoid gas taxes that fund road infrastructure.
Last updated: 1/5/2026
Official Summary
Congressional Research Service summary
<p><strong>Fair Sharing of Highways and Roads for Electric Vehicles Act of 2025</strong></p><p>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.)</p><p>The bill defines <em>electric vehicle</em> 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.</p><p>The bill defines <em>battery module</em> 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). </p>
Key Points
Main provisions of the bill
Imposes 1,000 dollar excise tax on EV sales
Adds 550 dollar tax on heavy battery modules
Funds Highway Trust Fund for roads
Addresses EV gas tax avoidance
Exempts hybrid vehicles from tax
How This Impacts Americans
Potential effects on citizens and communities
Electric vehicle buyers would pay additional fees for road infrastructure. The Highway Trust Fund would receive new revenue as EVs replace gas vehicles. EV adoption costs would increase while addressing road funding fairness concerns.
Policy Areas
Primary Policy Area
Taxation
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
1253, 119th Congress (2025). "Fair SHARE Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-1253
