Creates a new federal tax on the sale of electric vehicles and the sale of batteries, and directs the revenue from that tax into the Highway Trust Fund. The bill adds a new part to the Internal Revenue Code to impose the tax, updates the Code’s table of parts and the list of revenue sources for the Highway Trust Fund, and applies to sales occurring after December 31, 2025.

The measure increases federal receipts earmarked for highway spending but also raises costs for EV purchasers, and it will create new collection and reporting obligations for vehicle and battery sellers and for IRS administration.