118 S2882 IS: Stop EV Freeloading Act U.S. Senate 2023-09-21 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II118th CONGRESS1st SessionS. 2882IN THE SENATE OF THE UNITED STATESSeptember 21, 2023Mrs. Fischer (for herself, Mr. Ricketts, Mr. Cornyn, and Ms. Lummis) introduced the following bill; which was read twice and referred to the Committee on FinanceA BILLTo amend the Internal Revenue Code of 1986 to establish a tax on the sale of electric vehicles and batteries.

1.

Short title

This Act may be cited as the Stop EV Freeloading Act.

2.

Tax on sale of electric vehicles and batteries

(a)

Imposition of tax

(1)

In general

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

Electric Vehicles and Batteries

Sec. 4091. Tax on Electric Vehicles and Batteries.

4091.

Tax on Electric Vehicles and batteries

(a)

Battery module

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.(b)

Electric vehicles

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

Definitions

In this section—(1)

Battery module

The term battery module has the same meaning given such term in section 45X(c)(5)(B)(iii).(2)

Electric vehicle

(A)

In general

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

Exception for hybrid vehicles

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.(3)

Light-duty vehicle

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.

.(2)

Clerical amendment

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:PART IV—ELECTRIC VEHICLES AND BATTERIES.(b)

Transfer of revenue to Highway Trust Fund

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.(c)

Effective date

The amendments made by this section shall apply to sales after December 31, 2023.