A group of Republican senators has introduced a proposal to impose a $1,000 tax on new electric vehicle (EV) purchases. This initiative aims to ensure that EV owners contribute to the Highway Trust Fund, which finances federal road repairs and is traditionally funded through gasoline taxes.
Senator Deb Fischer, leading the proposal, highlighted that EVs, being heavier than traditional vehicles, cause more wear and tear on infrastructure. She emphasized the importance of EV owners contributing fairly to road maintenance, noting that drivers of gasoline-powered vehicles typically pay between $87 to $100 annually in federal gas taxes.
Transportation Secretary Sean Duffy acknowledged the need for EVs to contribute to road upkeep, stating, “They should pay for use of our roads. How to do that, I think, is a little more challenging.”
This proposal comes amid broader discussions about the future of EV incentives. Congress is considering eliminating the $7,500 federal tax credit for EV purchases, and the Trump administration has taken steps such as freezing funds for EV charging infrastructure and moving to rescind stringent emissions rules established during the Biden administration.
As EVs gain popularity, policymakers are grappling with how to adapt funding mechanisms for infrastructure maintenance to ensure all vehicle owners contribute equitably.
