JLARC: Impact of alternative-fuel tax preferences on EV adoption unclear despite $98 million biennial cost

Pete Van Moorsil, staff to the Joint Legislative Audit and Review Committee, told the House Finance Committee on Jan. 14 that eight tax preferences intended to increase adoption of alternative-fuel vehicles and supporting infrastructure together reduce state revenue by an estimated $98,000,000 in the current biennium.

The preferences include a sales-and-use tax exemption for qualifying alternative-fuel vehicle purchases (the largest, about $53,000,000 in the biennium), a sales-and-use tax exemption for batteries and charging infrastructure, exemptions and credits tied to commercial vehicles and public charging, a sales-and-use exemption for zero-emission buses, and a leasehold excise tax exemption for use of public land for charging infrastructure. To qualify for the principal sales-and-use exemption, a new vehicle must be priced at $45,000 or less (used vehicles $30,000 or less) and meet other…