Fair SHARE Act of 2025

Subchapter A of chapter 32 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part:

There is hereby imposed a tax equal to $550 on each battery module with a weight of greater than 1,000 pounds which is—

(1) sold by the manufacturer, producer, or importer thereof, and

(2) intended for use in an electric vehicle.

There is hereby imposed a tax equal to $1,000 on each electric vehicle sold by the manufacturer, producer, or importer thereof.

In this section—

The term battery module has the same meaning given such term in section 45X(c)(5)(B)(iii).

The term electric vehicle means a light-duty vehicle which satisfies the requirements under section 30D(d)(1)(F).

The term electric vehicle shall not include any motor vehicle which draws propulsion energy from onboard sources of stored energy which are both—

(i) an internal combustion or heat engine using consumable fuel, and

(ii) a rechargeable energy storage system.

The term light-duty vehicle means a motor vehicle, as defined in section 30D(d)(2), which has a gross vehicle weight rating of less than 8,500 pounds.

The table of parts for subchapter A of chapter 32 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

Section 9503(b)(1) of the Internal Revenue Code of 1986 is amended—

(1) in subparagraph (D), by striking and at the end,

(2) by redesignating subparagraph (E) as subparagraph (F), and

(3) by inserting after subparagraph (D) the following new subparagraph:

(E) section 4091 (relating to tax on electric vehicles and batteries), and

The amendments made by this section shall apply to sales after December 31, 2025.