More EV owners are slated to benefit from a recent bill that got signed into effect July this year because of new tax breaks. Even range plug-in hybrid owners will benefit from the forthcoming sales tax incentive, and this could lead to increase new electric car sales.
Gov. Jay Inslee of the state of Washington approved the legislation to raise tax incentive cutoffs Monday this week, according to an OPB report. At this point, qualifying new electric car owners would be entitled to take advantage of the sales tax break on the first $32K selling price of the purchased vehicle. This could mean net savings in auto tax from $2,600 to $3,100 for buyers provided the dealer is located anywhere in Washington.
JJ McCoy, Legislative director of the Seattle Electric Vehicle Association, said that other models like the Chevy Bolt, next-gen Nissan Leaf, and even the Tesla Model 3 can already qualify for the sales tax incentive. He also stated that the mid-market models such as the BMW i3, which starts at an MSRP of $42,400 can already participate, just like Tesla's upcoming release. Another given is that the sales tax incentives still vary depending on the state's discretion.
He added that the rising trend of electric vehicles actually have many benefits, although they cost a bit higher than the regular gas-powered cars, InsideEVs reported. "As car makers scale up battery production and prices fall, EVs will soon be able to compete unsubsidized and provide a compelling value proposition," noted McCoy.
In this case, based on Washington electricity rates, EVs consume about less than a dollar per gallon on the utility. This meant there's no loss when it comes to savings per every mile, plus actual EV owners have reported that these cars are nicer to drive, according to the publication.