S.536 - Fair Sharing of Highways and Roads for Electric Vehicles Act of 2025; Fair SHARE Act of 2025 (119th Congress)
Summary
The "Fair Sharing of Highways and Roads for Electric Vehicles Act of 2025" (Fair SHARE Act) proposes a new tax on the sale of electric vehicles and batteries. This tax aims to ensure that electric vehicle owners contribute to the Highway Trust Fund, similar to how gasoline taxes fund road maintenance. The bill amends the Internal Revenue Code of 1986 to impose a tax of $1,000 on each electric vehicle and $550 on each battery module weighing over 1,000 pounds.
Expected Effects
If enacted, the bill would increase the cost of electric vehicles and large battery modules. The revenue generated would be directed to the Highway Trust Fund, potentially offsetting the decline in gasoline tax revenue due to increased EV adoption. This could lead to more sustainable funding for infrastructure projects.
Potential Benefits
- Provides a dedicated revenue stream for the Highway Trust Fund.
- Addresses the funding gap created by reduced gasoline tax revenue.
- May lead to better-maintained roads and infrastructure.
- Could be seen as a fairer system where all vehicle owners contribute to road maintenance.
- Potentially incentivizes the development of lighter battery modules.
Most Benefited Areas:
Potential Disadvantages
- Increases the upfront cost of electric vehicles, potentially hindering adoption.
- May disproportionately affect lower-income individuals seeking affordable transportation.
- Could face opposition from EV manufacturers and environmental groups.
- The tax on battery modules might stifle innovation in battery technology.
- Potential for economic burden on consumers.
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. The allocation of tax revenue to the Highway Trust Fund also falls under Congress's power to provide for the general welfare and regulate interstate commerce. However, the fairness and equity of the tax could be debated in relation to the equal protection principles, although these principles are generally applied to state actions through the 14th amendment.
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).