To help accelerate the growth of the nascent electric vehicle market, Federal and state lawmakers have been proposing a of bevy tax solutions intended to incentivize car buyers to purchase an all-electric vehicle. Now, Michigan Governor Gretchen Whitmer is set to propose a new plan that will see the reduction or elimination of the EV sales tax, as well as further investments into electrifying government fleets and expanding existing infrastructure.
According to a report from the Detroit Free Press, this proposal is a part of Whitmer’s new budget plan to boost EV sales, and has four components:
- Remove the six percent sales tax from the first $40,000 spent on the purchase of an electric vehicle. With the addition of the full $7,500 Federal EV tax credit, this provides consumers almost $10,000 in savings.
- Budget $45 million to begin the transition to an all-electric state / local government fleet. This comes as part of Whitmer’s plan to create a carbon-neutral Michigan economy by 2050.
- Spend $65 million to bolster EV charging infrastructure throughout Michigan.
- Allocate $15 million to finance research into recycling and reusing minerals used in the manufacturing of battery components.
“The auto industry is going electric and so much of that transition is happening right here in Michigan,” said Governor Gretchen Whitmer. “Michigan put the world on wheels and is leading the way in future mobility and electrification.”
“Gov. Whitmer’s plan for significant investments in electric vehicle fleet conversions and charging will continue to position Michigan as a leader in the advanced mobility industry,” said president of the Michigan Energy Innovation Business Council Laura Sherman. “Investments in EV infrastructure, especially for public charging, public transit, and home charger and panel upgrades, will benefit communities across the state. The advanced energy industry looks forward to working wise investments into action to support more well-paying jobs and expanded access to clean transportation.”
This upcoming proposal makes sense when looking at Michigan’s future in the electric vehicle landscape. It would eliminate the state’s sales tax on affordable GM vehicles such as the Chevy Bolt EV, the Chevy Bolt EUV as well as the Chevy Equinox EV and its near-$30,000 base price. As previously reported by GM Authority, Michigan is already a strong contender for future EV investment from companies like GM. As such, further EV sales incentives to make Michigan more electric-friendly will only serve to strengthen the state’s allure for more investments.
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Comments
Lol should be paying more in taxes since they do more damage to the roads
How do ya figure Bob?
They weigh more than gas cars.
18 people gave me a thumbs down because I asked a question?? lol
Don’t believe the thumbs with high numbers, they are easily manipulated by clearing your cookies.
This has almost zero benefit for Detroit automakers as the vast majority of sales will go directly to Tesla, but it will negatively impact Toyota and Honda. Tesla’s largest conquest sales are from Toyota and Honda who are well behind American automakers with regard to BEVs.
Tax should be doubled on EV’s
Over time I think we’re going to see a shift from hard dollar amounts to percentages. As EVs become affordable (or “if” I should say), then a percentage-based program will make the most sense.
Man will never fly.
Get a Horse.
Jet engines on airplanes is a Commumist plot.
For me, I’d rather pay my electric bill to any place in America then send my gas money to the middle east. But that’s me.
Simon:👍
Oh, to be free of Opec, and the Saudis.
You’re not free of OPEC…do you seriously think that your electric power plant generates electricity with electricity? Take a minute and ponder that thought, don’t hurt yourself.
I hate to break it to ya Tim but: “According to the U.S. Energy Information Administration, most of the nation’s electricity was generated by natural gas, nuclear energy, and coal in 2020.”
In the US at least 60% of electrical generation is from fossil fuels.
Like I said, I’d rather get my “energy” from the U.S than from the middle east!!
More payoffs with public funds.
The beast from the east! 🤦♂️🤦♂️. Liberal moron at work again