New "Fair SHARE Act" Slaps $1,000 Tax on Electric Vehicles, $550 on Heavy Batteries Starting 2026

The Fair Sharing of Highways and Roads for Electric Vehicles Act of 2025, or "Fair SHARE Act," is doing exactly what its name implies, but maybe not how you'd expect. Instead of just splitting costs, it's adding new ones for electric vehicles (EVs). Starting after December 31, 2025, this bill puts a $1,000 tax on every new EV sold and a $550 tax on each battery module weighing over 1,000 pounds used in those EVs (SEC. 2). All that extra cash goes straight to the Highway Trust Fund (SEC. 2).

Charging Up the Highway Fund

The whole point here is to boost funding for maintaining and improving highways. By taxing EVs and their batteries, the bill creates a dedicated revenue stream for the Highway Trust Fund. The bill defines a taxable "electric vehicle" as a light-duty vehicle (under 8,500 pounds) that runs solely on electricity—hybrids with gas engines are excluded (SEC. 2). So, if you are planning on buying a fully electric vehicle, you will pay an extra $1000. If you are a manufacturer of EVs, you will need to consider the added battery tax.

Real-World Rollout

Let's break down how this might hit your wallet. Imagine you're buying a new electric SUV in 2026. On top of the sticker price, you'll now pay an extra $1,000. If you're a small business owner who planned to switch your delivery fleet to electric, you're looking at an extra grand per vehicle. For a contractor eyeing an electric truck, that's a significant added cost that could make sticking with gas-powered vehicles more appealing, at least in the short term.

Roadblocks and Bumps Ahead

While more money for roads sounds good, there are a few potential potholes. One challenge is how manufacturers might react. Could they design battery modules just under that 1,000-pound limit to dodge the tax (Potential Abuse)? It's also worth noting that this tax could slow down EV adoption, especially for folks and businesses on the fence due to cost. While the bill aims to make things "fair" by having EV drivers contribute to road upkeep, it could also make it harder for people to switch to cleaner vehicles. This might be a win for traditional auto and fuel industries, but it definitely adds a financial hurdle for the EV market.