replace expiring Federal Electric Vehicle (EV) Tax Credits

 

This bill would replace expiring federal tax credits for all electric vehicles bought in the state of Minnesota for 3

years. These tax credits include up to $7500 back for new EVs, and $4000 back for old EVs.

 

The federal government recently ended the EV tax credits, which promote the adoption of electric vehicles. To encourage

the continued adoption of EVs, it is imperative that the state of Minnesota step in to replace the expiring federal tax

credits.

 

Electric Vehicle (EV) - Any motor vehicle whose propulsion is powered fully or partially by an electric battery.

 

In the three years this bill will be in effect, according to the MN department of transportation, there will be 255,00

EVs purchased in the state of Minnesota. Assuming 60% of these are new EVs, and 40% are used, this program will cost

$1,555,500 over 3 years. To pay for this, we will tax all gas cars sold at a rate of $3000 a car while this bill is in

effect. This tax would bring in $1,650,000 in revenue over that same period. The remainder of this fund will go into the

general surplus after the bill expires.

 

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This bill will take effect on January 1st 2027, and expire on January 1st 2030.