Proposed Bill Seeks $130 EV Fee Rising to $150 by 2035
The BUILD America 250 Act would impose a $130 annual fee on electric-vehicle owners and $35 on plug-in hybrid drivers, increasing $5 per year from 2029 to reach $150 and $50 by 2035. Lawmakers project the fees could generate about $30 billion over a decade, creating a cost headwind for Tesla.
1. Proposed EV Fee Structure
The BUILD America 250 Act would require electric-vehicle owners to pay an annual $130 fee and plug-in hybrid drivers to pay $35. Beginning in 2029, both fees would increase by $5 each year until they reach $150 for EVs and $50 for plug-in hybrids by 2035.
2. Funding Impact and Projections
Congressional estimates suggest the EV and hybrid fees would contribute roughly $30 billion to the Highway Trust Fund over ten years. These new revenues are intended to offset declining gasoline tax collections as more drivers switch to electric vehicles.
3. Legislative Timeline
The bill has been introduced in the House by the chairs of the Transportation and Infrastructure Committee and is slated for committee markup this week. If approved, the fee schedule would become effective at the start of 2029.
4. Industry and Stakeholder Reactions
The Zero Emission Transportation Association has criticized the fees as punitive, noting that gas-powered drivers currently pay $73 to $89 in federal fuel taxes annually. Tesla and other EV makers are monitoring whether the proposal advances, as it may influence consumer adoption rates.