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New Tax on Electric Vehicles and Batteries

This act introduces a new tax on the sale of electric vehicles and their batteries, effective from January 1, 2026. Funds from this tax will be transferred to a fund supporting highway and road maintenance. This means that purchasing a new electric vehicle or a large battery for it will become more expensive.
Key points
A $1,000 tax will be imposed on each electric vehicle sold.
A $550 tax will be imposed on each battery module weighing over 1,000 pounds intended for an electric vehicle.
Revenue from these taxes will be transferred to the Highway Trust Fund.
The changes will apply to sales after December 31, 2025.
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Introduced
Citizen Poll
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Additional Information
Print number: 119_HR_1253
Sponsor: Rep. Johnson, Dusty [R-SD-At Large]
Process start date: 2025-02-12