JLARC: Alternative-fuel vehicle tax preferences coincided with EV growth but effect of credits is unclear

The Joint Legislative Audit and Review Committee presented a review of eight tax preferences intended to increase adoption of alternative-fuel vehicles in Washington, noting large growth in electric vehicles and charging infrastructure but saying the preferences' contribution to that growth is unclear.

Pete Van Moorsil, staff to JLARC, told the House Finance Committee that “the legislative auditor concludes that alternative fuel vehicles and associated infrastructure have increased in Washington, but that the effect of the preferences is unclear because changes in the market and other increased state and federal incentives also influence adoption of these technologies.”

JLARC estimated the eight preferences will reduce state revenue by about $98,000,000 in the current biennium. The largest single preference is a sales-and-use tax exemption for qualifying alternative-fuel…