by New bill on taxes for electric and hybrid vehicles
The U.S. House of Representatives has passed Donald Trump’s bill titled the ‘Great Beautiful Law.’ It now needs approval in the Senate before reaching the president’s desk for signing. If approved, owners of electric and hybrid vehicles will face significantly higher annual registration taxes.
Under the proposal, hybrid owners will pay an additional $100 per year, while electric vehicle drivers will pay $250. These changes aim to cover debts incurred by the government due to aging infrastructure. Currently, repairs are primarily funded through fuel taxes, which stand at $0.18 per gallon. However, as the popularity of eco-friendly vehicles grows, revenue from these taxes is declining.
“The bill includes provisions that will ensure historic investments in the Coast Guard to strengthen national security, as well as guarantee that electric vehicles begin contributing to the Highway Trust Fund,” said Representative Sam Graves.
Highway infrastructure funding issues
The Highway Trust Fund last received assistance in 2021, yet its debt grows by tens of billions of dollars annually. Electric vehicles are often seen as ‘non-payers’ since they hardly use fuel. Hybrids fall somewhere in between. It’s also worth noting that both types of vehicles typically weigh more than conventional gasoline cars, potentially causing greater road damage.
The highway infrastructure funding system has long been inefficient, failing to account for inflation. Currently, the fund’s annual debt reaches $20 billion. While the new bill may address this, there is a risk it could place an unfair burden on eco-friendly vehicle owners. The Senate may still introduce amendments before the final vote, so the law’s final version could differ.
