A Republican-backed bill introduced in Georgia’s House of Representatives would reinstate a $2,500 state tax credit for the purchase or lease of new electric, zero emission, and plug-in hybrid electric vehicles.
The credit would be limited by a $10 million annual cap and would sunset in 2023. It would also include a $500 state tax credit for residential EV charging stations, and a $1,500 credit for commercial charging stations. The bill was introduced by Rep. Todd Jones (R), and is co-sponsored by four other Georgia Republican legislators.
Georgia was formerly home to one of the country’s largest state EV tax credits, a $5,000 credit which was repealed in 2015. Before that, Georgia was one of the leading states in the country for EV sales, along with California.
Since the credit expired, EV sales plummeted in the state. As we’ve noted in the past, the vast majority of those sales prior to the credit’s expiration were for the Nissan Leaf.
Jones said that House Bill 732 would benefit Georgia’s auto industry, consumers, and the state economy as more manufacturers ramp up EV production. In a guest editorial, Jones wrote,
“Auto manufacturer Fisker, Inc. is considering 11 states, including Georgia, for building a manufacturing plant for its electric SUV. Furthermore, this year SK Innovation is investing billions of dollars in a massive EV battery plant in the City of Commerce that will employ thousands of hardworking Georgians. HB 732 would allow our state to remain competitive in this shifting market.”
Georgia’s proposed bill comes at a time when members of Congress are also considering new EV legislation. California Rep. Ro Khanna (D) plans to introduce a bill that would expand the federal EV tax credit.
And a new report details a bipartisan bill which would offer a $7,000 tax credit for the next 400,000 vehicles after an automaker reaches the original 200,000 vehicle threshold.
We don’t follow Georgia politics too closely, but considering the GOP’s majority in the Georgia House, and the possibility that this should have some serious bipartisan support, we’d think this bill would have a decent shot at passing.
With legislation like this, Georgia could once again establish itself as an electric vehicle leader, even if plug-in hybrids are eligible for the credit. One can see signs of electric momentum in the state — SK Innovation’s EV battery Gigafactory is indeed coming to Georgia, and the University of Georgia recently placed an order for 20 electric buses, giving it one of the largest e-bus fleets in the country.
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