Last week, U.S. Sen. Sherrod Brown (D-OH) introduced a new legislation that could add up to $250 per month in benefits to people commuting to work in electric vehicles. The new bill, called Electric Vehicle Credit Act, would allow employers to give workers with electric cars access to the same pre-tax transportation benefits many workers receive for traditional forms of transportation like public transportation allowances, parking fees, and public transit passes.
Employers would be able to give up to $250 per month in electric charging benefits without employees being taxed, making their benefit packages more competitive.
A lot of people don’t take advantage of these other benefits already available, but to make them accessible to EV charging too would bring more attention to them. It would apply to any car with a 4 kWh or bigger battery pack, and any motorcycle or three-wheeler with a battery pack capacity of at least 2.5 kWh.
Brown commented when introducing the amendment to the Internal Revenue Code:
“As more Ohioans choose to drive electric to save on gas and reduce pollution, it’s important that employers have the opportunity to offer vehicle charging as a workplace benefit. Many workers are already able to exclude bus passes and parking fees from their taxable income and offering workers using new transportation options this same benefit help Ohio employers recruit and retain talent.”
The Electric Drive Transportation Association (EDTA) has endorsed the Electric Vehicle Credit Act, which is now assigned to the Senate Finance committee, and they applauded Brown for his initiative. Genevieve Cullen, President of the Electric Drive Transportation Association, on the announcement:
“EDTA applauds Senator Brown’s leadership on electric drive and this effort to promote charging in workplaces. Electrifying the daily commute allows employees to save on gasoline and communities to benefit from reduced pollution. Expanding electric vehicle charging in the workplace is an important step in moving toward smarter, cleaner electric transportation in Ohio and across the country.”
While it might not seem so significant at first glance, we are talking about a total potential benefit of $3,000 per year which could make the difference for a lot of people when breaking down the numbers during their next car purchase. If you support Brown’s Electric Vehicle Credit Act, you can let him know on Twitter.
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