What tax Incentives does your State or Country provide?

dbsb3233

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However, when Ohio passed the new gas tax last year, raising it by about a dime, they decided to punish Hybrid, Plug-in, and BEV owners. Now you have to pay $100 MORE to register a hybrid for the year, and $200 MORE to register a PEV, or BEV.
That's not a punishment, it's a substitute for not paying fair share of gas taxes that fund roads.

All vehicles use the roads, whether ICE, BEV, or hybrid. So states usually enact a substitute for vehicles that pay little or no gas tax.
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Kamuelaflyer

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Hawaii has the following "incentives" for buying a BEV here in the state: a 4.7120% (Hawaii County rate) General Excise Tax on the purchase of the vehicle. The European forum dwellers around here will recognize our GET for what it is. -- a Value Added Tax. That's a tax on every level of goods and services related to the car within the state. To put it in sales tax terms -- it's around an 11% sales tax. Yes, that's the exact same tax everyone else pays. ;)

But I won't be paying gas tax!
 

MachE2021

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I live in CA so they have lots of incentives...unless you’re making 6 figures....then you don’t get any tax break and they make you pay for other people’s’ tax incentives....
 
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jhalkias

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That's not a punishment, it's a substitute for not paying fair share of gas taxes that fund roads.

All vehicles use the roads, whether ICE, BEV, or hybrid. So states usually enact a substitute for vehicles that pay little or no gas tax.
First of all, let me say that I agree that BEV's should pay their fair share to maintain roads. Secondly, be aware that Ohio provides ZERO tax incentives for EV adoption, even though we now have a battery plant in the state, and a soon to be manufactured truck in Lordstown. But I digress.

Let's do some math.

The Ohio Gasoline tax is 38.5 cents a gallon. My Escape gets about 27mpg in my driving. So, Let's divide the $200 (additional - above the ICE registration) registration fee by .385=519.48 gallons X 27 = 14,026. That is how many miles I would have to drive. So if you drive less, it is a penalty on the EV or PHEV driver.

But here is where it gets REALLY bad. The additional registration of $200 is on ANY car that plugs in and has a battery. So we pay that additional fee on my wife's Fusion Energi. If I buy an ICE Fusion, it gets EPA 27 mpg. The Fusion PHEV gets 103 mpg combined. So the ICE car drives 14,026 miles to pay for that amount of tax. Our Fusion driving the same miles, using both gas and EV at 103 MPG will pay the $200, PLUS an additional $52.43 in tax on the gas we have to use at that mileage.

However, my wife (especially during Covid while she is working from home) is probably only going to put 8,000 miles on the car this year. So, the ICE car would pay $114 in gas tax for that mileage. We are going to pay $200, PLUS $29.90 for the gas we buy, so $229.90 vs. $114. And, I am not adding any of the tax we pay on the additional electricity, which an ICE car avoids.

Yeah, we are not talking big bucks here, but it is just wrong-headed to enact policies that in fact do punish the drivers of Hybrids (they pay an additional $100) and PHEV and EV adopters (who pay an additional $200).

By the way . . . know who set the pattern for this legislation? ALEC. If you are not familiar with ALEC, they are a PAC that develops pattern legislation (they have done a lot to try and destroy public education too) that conservatives then get passed in their states. Guess who funds a great portion of ALEC? The Koch's. What is a big part of their business? Oil and gas. Think they want to discourage EV adoption?

I will also point you to this article that is very informative:
https://www.consumerreports.org/hyb...tting-electric-vehicle-owners-with-high-fees/

From that article, Ohio's fees are 36% higher tax than the average ICE car driver would pay in tax.
 
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jhalkias

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Just a further FYI, the Ohio legislature included the additional fees when they increased the gas tax in the state by 10.5 cents a gallon. So ICE drivers got hit with an additional 10.5 cents a gallon, while PHEV and EV drivers got hit with an extra $200 registration fee.
Yeah, I am bitter.

But hey, we now don't have to display a front license plate. So there is that. :rolleyes:
 


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First of all, let me say that I agree that BEV's should pay their fair share to maintain roads. Secondly, be aware that Ohio provides ZERO tax incentives for EV adoption, even though we now have a battery plant in the state, and a soon to be manufactured truck in Lordstown. But I digress.

Let's do some math.

The Ohio Gasoline tax is 38.5 cents a gallon. My Escape gets about 27mpg in my driving. So, Let's divide the $200 (additional - above the ICE registration) registration fee by .385=519.48 gallons X 27 = 14,026. That is how many miles I would have to drive. So if you drive less, it is a penalty on the EV or PHEV driver.

But here is where it gets REALLY bad. The additional registration of $200 is on ANY car that plugs in and has a battery. So we pay that additional fee on my wife's Fusion Energi. If I buy an ICE Fusion, it gets EPA 27 mpg. The Fusion PHEV gets 103 mpg combined. So the ICE car drives 14,026 miles to pay for that amount of tax. Our Fusion driving the same miles, using both gas and EV at 103 MPG will pay the $200, PLUS an additional $52.43 in tax on the gas we have to use at that mileage.

However, my wife (especially during Covid while she is working from home) is probably only going to put 8,000 miles on the car this year. So, the ICE car would pay $114 in gas tax for that mileage. We are going to pay $200, PLUS $29.90 for the gas we buy, so $229.90 vs. $114. And, I am not adding any of the tax we pay on the additional electricity, which an ICE car avoids.

Yeah, we are not talking big bucks here, but it is just wrong-headed to enact policies that in fact do punish the drivers of Hybrids (they pay an additional $100) and PHEV and EV adopters (who pay an additional $200).

By the way . . . know who set the pattern for this legislation? ALEC. If you are not familiar with ALEC, they are a PAC that develops pattern legislation (they have done a lot to try and destroy public education too) that conservatives then get passed in their states. Guess who funds a great portion of ALEC? The Koch's. What is a big part of their business? Oil and gas. Think they want to discourage EV adoption?

I will also point you to this article that is very informative:
https://www.consumerreports.org/hyb...tting-electric-vehicle-owners-with-high-fees/

From that article, Ohio's fees are 36% higher tax than the average ICE car driver would pay in tax.
I completely agree there will be a need to provide funds for roadways and drivers are the right tax base to target. However, what ALEC has been doing is an intentional attack on BEV adoption. At this point we really need to be implementing regulation to encourage BEV adoption to move us off fossil fuels. Once that is well underway, then we need to address equitable infrastructure taxing. I'm really hopeful the next Maryland legislative session will restore the BEV tax rebate that expired when COVID-19 cut the 2020 session short.
 

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Ford Mustang Mach-E What tax Incentives does your State or Country provide? 1597156720600


Good ole Kansas .. yup .. nothing but an additional fee when registering. Also looked into Solar. The ONLY energy company in Kansas actually found a way to make your bill more expensive (directly from them not including the cost of the solar) than just using their energy. So an impossible payback.
 

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Ford Mustang Mach-E What tax Incentives does your State or Country provide? 1597156720600


Good ole Kansas .. yup .. nothing but an additional fee when registering. Also looked into Solar. The ONLY energy company in Kansas actually found a way to make your bill more expensive (directly from them not including the cost of the solar) than just using their energy. So an impossible payback.
Sounds like you need to move to a state that is living in the reality of the 21st century . . .
 

Stickboy46

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Sounds like you need to move to a state that is living in the reality of the 21st century . . .
Ideally yes .. but it has it's own benefits. Low cost of living, easy commute, decent job (for now). If those change .. then yes, I would be looking elsewhere if we haven't moved out the olden days by then.
 
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dbsb3233

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The Ohio Gasoline tax is 38.5 cents a gallon. My Escape gets about 27mpg in my driving. So, Let's divide the $200 (additional - above the ICE registration) registration fee by .385=519.48 gallons X 27 = 14,026. That is how many miles I would have to drive. So if you drive less, it is a penalty on the EV or PHEV driver.
I probably should have elaborated further in that reply. I meant the basic principle is that a special EV fee (above normal auto registration fees that all owners pay) exists to replace the road-funding gas taxes that EV drivers don't pay. But that doesn't mean a state may not end up overshooting the equivalent mark when they set the fee amount. Maybe Ohio that.

The real problem is that it's extremely difficult to mimic the usage-correlation effect of gas taxes. While not perfect either, the gas tax loosely correlates to the amount and severity of road usage impact. More miles driven = more gas used = more tax paid. Heavier vehicle pounding the pavement harder = more gas used = more tax paid.

But there is no good way to apply the same fuel usage tax to BEVs, because most charge at home where there's no practical way to differentiate their BEV electricity from their other electricity. Some have floated the idea of eliminating the gas tax altogether and switch all vehicles to a mileage tax, but that's got all kinds of implementation problems. So, they're stuck (for now anyway) with an oversimplified flat annual fee for EVs, based on overall averages. As with any flat fee, those that drive fewer miles than average get screwed, those more than the average get a gift. (That's IF they use fair and logical averages to determine the fee amount. Maybe Ohio didn't, although that looks fairly close to the national average for annual miles driven that I've seen. Maybe a tad high.)

BTW, auto registration fees have had the same problem, for decades. Lower-than avg users get screwed, above-avg users get a gift. Being retired, I get screwed by driving fewer-than-average miles too.
 

dbsb3233

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Good ole Kansas .. yup .. nothing but an additional fee when registering.
That $100 annual fee is actually a bit of a discount relative to average road-funding gas tax. The KS state gas tax is $0.24/gal. Average annual miles driven in the US is about 13,500. Average ICE vehicle MPG is 25. That's 540 gallons x $0.24 = $130.

Granted, $30 is a pittance. But it is slightly less than the average gas tax paid toward maintaining roads. And of course people's miles drive (and MPG) varies.
 

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Here in Quebec the province has an $8,000 incentive for BEV under $60,000 MSRP , that makes the MME Select and Premium entitled for this program , and $4,000 to $8,000 for PHEV depending of the battery size, which is supported by the dealers untill they receive the money directly from the government. They also have a $600 incentive when you buy a wall charger. The federal government has an incentive program of $5,000 has long has a model car has a trim under $45,000, so the MME is not entitled for that one at the moment, but there was supposedly some talks about changing this but they didn't present a budget yet due to Covid-19, so this one is on the ice now.
As an extra added bonus in Quebec, EVs have special green plate that allows riding in reserved lanes and no toll access to 2 bridges in Montreal area ! Not to mention that Hydro Quebec is government owned so they even build their own charging network. Thanks to all that I see more and more people buying EVs.
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