FOR ELECTRIC VEHICLES IN GEORGIA
Electric vehicles have big benefits for Georgia’s drivers. They produce zero harmful tailpipe emissions, they cost less to fuel and operate, reduce our dependence on oil imports and offer millions of dollars in economic value to the state.
This analysis assesses the economic impacts of two policy proposals regarding the growth of Georgia’s electric vehicle market. Georgia currently has more than 26,000 battery electric vehicles and over 55,000 hybrid electric vehicles on the road, representing 3 percent of all vehicles in Georgia. The first proposal reduces the electric vehicle annual license fees levied against battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) (collectively, EVs). Currently, an annual fee of $200 is levied on all new EV purchases in addition to annual tag fees of $55.1 This proposal modifies the EV annual license and tag fees to a flat fee of $50 for personal use vehicles and $100 for business use vehicles. The reduced fee is assumed to apply for five years. The second policy proposal introduces a tax credit of $2,500 for all EVs applicable at the time of purchase. The tax credit is assumed to apply for five years.
In order to estimate the full impact of both the reduced electric vehicle annual license fee and the introduction of a tax credit, The Greenlink Group used the IMPLAN model, leading economic development software that determines the impacts of changes in incomes and purchasing behavior at the state level. The analysis estimates the number of full-time equivalent employees, growth in gross domestic product (GDP), and increased income in Georgia of implementing both proposed policies. The net GDP, income, and job impacts of both policies from 2017-2026 are provided in Figure 1.
Our analysis estimates that a reduction in the current user fee to $50 and the addition of a $2,500 tax credit will result in significant net economic gains to Georgia. Combined, the policies produce net improvements of 951 full-time equivalent jobs, $100 million in gains to GDP, and $54 million in increased income. Overwhelmingly, the proposed tax credit is responsible for the resulting benefits and gains for Georgia when compared to the proposed reduction in EV annual license fee. The tax credit also better leverages Georgia’s public dollars.
Please see full study for more information on the findings of this report.