The sizable incentive has been considered one of the best in the country, helping the state rise to the top five in terms of EV registrations. Buyers who also take advantage of the $7,500 federal tax credit can effectively reduce the price of an EV purchase by as much as $12,500.
The incentive is now threatened by a bill introduced by Republican House Representative Chuck Martin and several other supporters. Martin argues that the current tax break was designed to help electric vehicles become “mass marketable,” and is no longer necessary because the goal has been accomplished.
Critics argue that the program should be left intact due to environmental concerns and its help in reducing the need for foreign oil.
Interestingly, Martin–a Kia Optima Hybrid owner–also introduced legislation that aims to reform dealer franchise laws and open the door for Tesla Motor’s direct-sales model.
“I want to allow people access to the (electric vehicle) market,” Martin said. “I just don’t want to make other people pay for their decision.”
The legislator further argues that the current credit system is too narrowly focused on zero-emissions vehicles, such as the Nissan Leaf and Tesla Model S. Several other states, in contrast, have programs that include hybrids and only provide tax incentives based on the price premium compared to the equivalent gasoline-only car.
The incentive-eliminating bill has yet to receive a formal vote.
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