Georgia, Illinois Axe State EV Incentives

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Two states have ended their electric vehicle purchasing incentives. 

Georgia and Illinois have both axed their state EV incentives and a Texas is mulling the move. With more and more electric vehicles hitting the roadways and less gas being sold at the pump, states are lacking in state gas taxes for road maintenance and repair. As a result, Georgia is now charging an annual fee of $200 to privately own an electric vehicle and $300 on commercial EVs as a way to replace gasoline taxes. Last week, the state voted to end its $5,000 tax credit on EVs and add the fee, which is the highest in the nation.

Considering Georgia has been the top market for the Nissan Leaf for over a year now, it is expected that ending the state incentives will impact the Japanese automaker’s sales. The new measures will be effective starting July.

SEE ALSO: Charging Stations More Beneficial than Tax Incentives: Study

In Illinois, the state has suspended its incentives as part of a statewide ban on spending to help cover a $1.6-million budget debt. As home to a large Mitsubishi plant, the state has been the top market for the i-MiEV. EV buyers in Illinois were receiving a 10-percent rebate on EV purchases, up to $4,000.

The third state that is considering the move is Texas, where its rebate program is set to expire in June and currently there’s no move to extend it.

[Source: Edmunds]

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  • smartacus

    I’ve seen young men who would be considered “working poor” commuting on their 35MPG motorcycles paying their fair share of the highway trust fund gas tax on every gallon of fuel they buy, even though their two tires and 450lbs don’t cause even a 10th of the road damage of a 4800 lb Tesla.