Electric car incentives have long-been associated with high electric vehicle adoption rates. The better the incentives and perks, the more people buy electric. Combine great incentives with great charging provision (as seen in Norway) and you’ll find electric car sales can rival that of many internal combustion engined vehicles.
Similarly though, as illustrated by the U.S. state of Georgia in 2015, replacing electric car incentives with taxes (and/or) fees does the exact opposite, causing electric vehicle sales to drop off a cliff.
In an ideal world, tax rebates and incentives wouldn’t need to exist, but until electric cars are on parity with petrol and diesel vehicles, they help make electric cars more affordable. Which is one of the reasons why a new lobbying group — The EV Drive Coalition (which includes Tesla, Nissan and General Motors as members) — has been set up. It is calling on the U.S. Federal Government to change its current 200,000 per-automaker limit on Federal Tax Credits for EV purchases, and adopt a nationwide EV incentive program that can continue to help and grow electric car sales.
Is it fair? Is it needed? And what’s the alternative?
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