Report

Washington State wants to limit EV incentives for expensive cars

Tesla Model S, BMW i3 Among Models That Will No Longer Qualify For Perk

California has been making moves to eliminate plug-in vehicle incentives for residents who are best equipped to foot the bill for their new plug-in hybrids or electric vehicles. Now, it looks like Washington State is doing the same. Is this a new Pacific Coast thing?

The Evergreen State's lawmakers, faced with plug-in vehicle tax breaks that were set to expire at the end of last month, voted to extended them at least another year, Oregon Public Broadcasting (OPB) reports. The catch is that the perks will no longer apply for vehicles priced higher than $35,000.

That means that buyers of cars like the Tesla Model S and BMW i will no longer get any extra financial love from the state of Washington. The latter model has an interesting local angle, because its carbon fiber is made at a factory in the central part of the state. Models like the Nissan Leaf and Kia Soul EV remain under the new tax-break threshold.

The updated bill has been sent to Washington Governor Jay Inslee for signing. The state has also increased the registration-renewal feel for plug-in vehicles to $150 from $100. That fee was put into place in order to account for the highway-funding shortfall caused by the fact that electric vehicles don't pay gas taxes.

As for California, that state recently put into place its own dock-the-rich twist on its plug-in vehicle perks, though the Golden State is using the prospective buyer's income level, and not the price of the vehicle, as the barometer for determining the vehicle incentive.

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