H.R.1253 - Fair Sharing of Highways and Roads for Electric Vehicles Act of 2025; Fair SHARE Act of 2025 (119th Congress)
Summary
H.R.1253, also known as the Fair SHARE Act of 2025, proposes to amend the Internal Revenue Code of 1986 by establishing a tax on the sale of electric vehicles and batteries. The bill introduces a tax of $1,000 on each electric vehicle and $550 on each heavy battery module (over 1,000 pounds). Revenue generated from these taxes would be transferred to the Highway Trust Fund.
The bill defines key terms such as 'electric vehicle' and 'battery module' with references to existing sections of the Internal Revenue Code. It specifically excludes hybrid vehicles from the electric vehicle tax. The effective date for these amendments is for sales after December 31, 2025.
This legislation aims to ensure that electric vehicle owners contribute to the maintenance and development of highways and roads, similar to how gasoline taxes function for traditional vehicles.
Expected Effects
The primary effect of this bill, if enacted, would be to increase the cost of electric vehicles and large battery modules. This could potentially slow the adoption rate of electric vehicles.
However, it would also provide a dedicated revenue stream for the Highway Trust Fund. This could help fund infrastructure projects and road maintenance.
The tax burden would shift, placing a greater financial responsibility on EV consumers and manufacturers to support highway infrastructure.
Potential Benefits
- Provides a dedicated funding source for the Highway Trust Fund, ensuring resources for road maintenance and infrastructure improvements.
- Aims to create a fairer system where electric vehicle owners contribute to highway upkeep, similar to gasoline tax contributions from traditional vehicle owners.
- Could incentivize innovation in battery technology to reduce weight and avoid the tax on heavier battery modules.
- May lead to more sustainable funding for transportation infrastructure as electric vehicle adoption increases.
- Could potentially reduce the reliance on general tax revenue for highway projects.
Potential Disadvantages
- Increases the upfront cost of electric vehicles, potentially making them less accessible to some consumers.
- Could slow down the adoption rate of electric vehicles, hindering efforts to reduce emissions and combat climate change.
- The tax on heavy battery modules may disproportionately affect certain electric vehicle models or manufacturers.
- May face opposition from electric vehicle advocacy groups and manufacturers who argue it unfairly penalizes the industry.
- Could create administrative complexities in collecting and distributing the tax revenue.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the constitutional power of Congress to levy taxes, as outlined in Article I, Section 8, Clause 1, which grants Congress the power to "lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States." The bill specifies that the revenue generated will be directed to the Highway Trust Fund, which supports infrastructure development, an area where the federal government has historically played a role.
There are no apparent violations of individual rights or freedoms guaranteed by the Constitution or its amendments. The tax applies uniformly to the sale of electric vehicles and batteries, without discriminating against any particular group or state.
However, the fairness and equity of the tax could be debated, as it specifically targets electric vehicle owners. While the Constitution grants Congress broad taxing powers, the specific application and potential impact on interstate commerce (Article I, Section 8, Clause 3) could be subject to scrutiny.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).