Republicans in Congress add $250 annual federal EV tax to transport bill
Five principles should determine how you fund transport, says Consumer Reports.
They might be better than gas-powered cars in most conceivable ways, but electric vehicle sales are having an undeniably hard time right now. The cause is no mystery: since January 2025 the US government has been actively hostile to the idea of energy efficiency and in the intervening months has taken an axe to fuel efficiency regulations, prosecuting polluters, and the consumer-facing tax credit.
That last one had the effect of bringing forward sales from people who needed an EV and knew the credit was expiring at the end of last September, leading to a rosy-looking Q3 2025 followed by a rather bad Q4. Things got even worse this year—in January just 5.1 percent of all new vehicles sold were EVs, compared to 8.3 percent in January 2025. But the government's antipathy toward EVs isn't done yet. House Transportation and Infrastructure Committee Chair Sam Graves (R-Mo.) wants to include an annual $250 tax on EV drivers—hybrids would also pay $100 a year—in an upcoming bill.
This is the second time Graves has tried to tax drivers of more efficient vehicles; last year the committee under Graves wanted to include an escalating EV tax, starting at $200 annually, into the budget but was unsuccessful.
