Electric vehicles are becoming increasingly popular but several states are cutting incentives and slapping them with new fees.
According to CNBC, at least five different states have passed legislation this year alone that specifically targets owners of electric vehicles. The fees vary by state but typically run between $100 and $200 annually.
The move isn't unprecedented as some states have already applied special fees for registering electric vehicles. A majority of the new funds are being dedicated to infrastructure projects such as building and maintaining local roads.
While it's easy for electric vehicle owners to feel targeted by the legislation, it makes sense in a majority of states where a gas tax is used to fund road repairs and construction. Since electric vehicles don't use gas, every sale represents a loss of income for the state. Unsurprisingly, many states are now trying to recoup that loss by adding fees to electric vehicles.
Fees aren't the only challenge facing electric vehicles as the report notes seven states have eliminated incentives for purchasing an EV. This has had a significant impact on sales in certain places such as Georgia.
There's an even bigger headache on the horizon as several automakers - including General Motors, Nissan, and Tesla - are quickly approaching the 200,000 vehicle limit that enables buyers to receive a $7,500 federal tax credit when they purchase of lease an electric vehicle. The chances of the credit being renewed under the Trump administration are iffy and the elimination of the credit could price mainstream electric vehicles such as the Bolt, Leaf, and Model 3 out of the range of many consumers.
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