ATLANTA— State Representative Ben Harbin (R-Evans) and economist Dr. Robert Westcott hosted a press conference yesterday to discuss the findings of a new study detailing the economic impact that the elimination of the Zero Emissions Vehicle Tax Credit would have on Georgia’s economy.
“The Zero Emissions Vehicle Tax Credit puts more electric vehicles on the road, positively impacting Georgia’s economy and pushing us a step closer towards energy independence,” said Rep. Harbin. “Because drivers of electric vehicles are not reliant on foreign oil, they are less likely to cut back on their spending when gas prices rise. This tax credit is not only good for the owners of electric vehicles, but it is also an insurance policy for the state’s economy through high peaks in gas prices.”
The Keybridge Research study, which was commissioned by Securing America’s Future Energy and the Electrification Coalition, studied the impact that the tax credit elimination would have on the state’s gross domestic product (GDP). The study found that eliminating the Georgia electric vehicle tax credit before 2019 would reduce the state’s GDP each year between 2015 and 2030. This reduction is compared to estimates made based on if the tax credit were to stay in place through 2019. The cumulative 5-year loss of state GDP in Georgia would be $107 million, and the cumulative 16-year loss of state GDP would be $252 million.
These figures are based on an estimate that 44,000 fewer electric vehicles would be on Georgia roads by 2019, because drivers would have less incentive to purchase the automobiles. Assuming that these drivers would purchase conventional vehicles instead of electric vehicles, Keybridge Research then found that these drivers would pay an additional $155 million in gasoline bills over the next five years. This burden on consumers and a loss of federal tax credits are listed as the contributing factors for the relative loss in GDP.
In light of the study’s results, Rep. Harbin has introduced House Bill 220, legislation which gradually phases out the electric vehicle tax credit through 2019.
“I am not suggesting that these tax credits be available forever, but I do believe that we must continue to incentivize electric vehicle technology for the next few years,” said Rep. Harbin. “This market has so much potential, and by gradually phasing out the tax credits, we will ensure the technology continues to progress in its crucial early years of development.”
Under the current tax credit program, Georgians can receive a $5,000 tax credit to support the purchase of electric vehicles. HB 220 would lower the tax credit to a maximum of $3,000 between July 1, 2015, and December 31, 2017. The credit would be lowered again to a maximum of $2,000 between January 1, 2018, and December 31, 2019.
For more information on HB 220, please click here.
To view a copy Rep. Harbin’s press conference, please click here.
Representative Ben Harbin represents the citizens of District 122, which includes portions of Columbia County. He was elected into the House of Representatives in 1994, and currently serves as the Vice Chairman of the House Appropriations Subcommittee on Health. He also serves on the Energy, Utilities & Telecommunications, Insurance, and Ways & Means committees.
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