The "Fair SHARE Act of 2025" introduces a tax on the sale of electric vehicles and heavy battery modules to support the Highway Trust Fund.
Dusty Johnson
Representative
SD
The "Fair SHARE Act of 2025" introduces a tax on the sale of electric vehicles and heavy battery modules to support the Highway Trust Fund. It taxes $1,000 on each electric vehicle and $550 on heavy battery modules (over 1,000 pounds). This act defines electric vehicles and light-duty vehicles, ensuring hybrid vehicles are excluded. The tax revenue will be dedicated to the Highway Trust Fund, with changes effective for sales after December 31, 2025.
Fair SHARE Act Adds New Taxes to EVs and Batteries Starting 2026: Funds to Highway Trust Fund
The Fair Sharing of Highways and Roads for Electric Vehicles Act of 2025, or Fair SHARE Act, slaps a new tax on electric vehicles and their batteries. The goal? Make sure EV drivers chip in for road maintenance, just like those of us with gas-powered cars do through fuel taxes.
Road Funding Revamp
The bill introduces two new taxes, effective after December 31, 2025:
- A $550 tax on each battery module over 1,000 pounds sold by manufacturers, producers, or importers for use in EVs (Section 2). Think of the big batteries powering those electric SUVs and trucks.
- A $1,000 tax on each electric vehicle sold by manufacturers, producers, or importers (Section 2). This hits light-duty EVs—cars under 8,500 pounds—but not hybrids that still use a gas engine (Section 2).
All this new tax revenue goes straight to the Highway Trust Fund (Section 2), which pays for highway and road upkeep across the country.
Real-World Rollout
So, what does this mean for someone thinking about buying an EV? If you're eyeing a fully electric sedan, you're looking at an extra $1,000 added to the price tag, starting in 2026. If you are looking at a larger electric vehicle, like a truck or SUV with a hefty battery, the manufacturer is on the hook for the $550 tax per heavy battery module, which they will likely pass on to you, the consumer. For example, a contractor choosing between a standard pickup and a new electric model might see a steeper price difference, thanks to these added taxes.
Plugging the Funding Gap?
The Fair SHARE Act aims to level the playing field. Right now, EV drivers don't pay gas taxes, but they still use the roads. The bill aims to ensure everyone contributes to highway maintenance. It also means more money for the Highway Trust Fund, potentially leading to better roads and bridges.
However, there are important challenges. Adding to the upfront cost of EVs could slow down their adoption, especially for folks on a budget. A rideshare driver, for instance, might think twice about switching to electric if it means a bigger initial investment. This could be a bigger hurdle for people looking to go green, and it might disproportionately hit those early adopters who've already taken the leap.