The Joint Legislative Audit and Review Committee (JLARC) presented its 2024 review of eight tax preferences intended to increase alternative-fuel vehicle adoption to the House Finance Committee on Jan. 14.

The review found that the number of alternative-fuel vehicles licensed in Washington rose about 230 percent between the introduction of the preferences and the end of 2023, and that more than 40,000 vehicles claimed the largest sales-and-use-tax exemption during the period. JLARC staff reported growth in zero-emission school and transit buses and an increase of more than 3,000 public electric vehicle chargers statewide.

The legislative auditor, Pete Van Moorsil, told the committee that although vehicle counts and charging infrastructure rose, the analysis could not determine how much of that growth resulted from the tax preferences alone. Van Moorsil noted other influences: falling EV prices, an expanding model mix, other state and federal incentives, and a diminishing value of the exemption (the partial exemption amount declines every two years and had fallen to $15,000 at the time of the review).

JLARC estimated the package saved about $98 million in the current biennium, with the single largest preference — an alternative-fuel vehicle sales-and-use-tax exemption — accounting for roughly $53 million of that total. Qualifying vehicles must meet fuel and price limits (e.g., new vehicles under $45,000), and the partial exemption amount is scheduled to decline over time and expire in August (as presented to the committee).

Committee members asked staff about the inclusion of non‑zero emission fuels (natural gas, propane) in the statutory definition and about coordination with the Electric Vehicle Coordinating Council. Van Moorsil said the Department of Licensing data show the vast majority of vehicles claiming the preferences were electric or plug‑in hybrids; he recommended that, if the Legislature continues the preferences, it clarify at what level the reduced exemption should continue and consult the Electric Vehicle Coordinating Council on any amendments.

The Committee did not take formal action during the hearing; JLARC presented the findings for lawmakers to use when drafting possible bills this session.