Washington, D.C. – Establishing an electric vehicle (EV) tax credit for the purchase of all-electric and plug-in hybrid vehicles in North Carolina would produce economic gains while reducing gasoline consumption, says a new study released today by Keybridge Research LLC. The credit would boost the state’s income (or GDP) by $52 million over the next 16 years, while making consumers less vulnerable to fluctuating gasoline prices.
The report finds that a $2,500 state tax credit for EVs would save North Carolina drivers $50 million in gasoline bills over the next five years, only partially offset by $20 million in increased electricity consumption. Those gasoline savings would increase to $233 million through 2031. Furthermore, the study finds that if gasoline prices return to their average level of the past five years, the boost to North Carolina’s GDP would be even larger, at $41 million over five years and $68 million over the 16-year study period.
More electric vehicles on North Carolina’s roads would mitigate the negative effects of high or volatile global oil prices on the state’s economy, acting as a type of insurance policy for household budgets.
“Plain and simple, EVs cost less to drive a mile down the road than conventional internal combustion engine vehicles, even with current low gasoline prices,” said Keybridge President Dr. Robert F. Wescott. “The bump in state GDP from increased electric vehicle adoption is fueled in part by the budget relief on households generated by driving electric and saving on gasoline. These savings could be used to purchase other North Carolina-produced goods and services.”
“Since a rebate would promote more EV purchases, it would also mean that more North Carolinians could take advantage of the $7,500 federal EV tax credit, which would represent an additional inflow to family budgets and the state’s economy,” added Wescott.
Increased fuel diversity in North Carolina’s transportation sector also contributes to the state’s long-term energy security, as EVs are powered by domestically produced electricity. The U.S. transportation sector relies on oil for more than 92 percent of its energy, a dependence that undermines national security and hampers economic prosperity. With volatility in the global oil market at record highs, EVs can act as an important buffer against oil price spikes.
The study, “Impact of Introducing an Electric Vehicle Rebate on the North Carolina State Economy,” was commissioned by Securing America’s Future Energy in partnership with the Electrification Coalition.
About Securing America’s Future Energy (SAFE)
Securing America’s Future Energy (SAFE) is a nonpartisan organization that aims to reduce America’s dependence on oil and improve U.S. energy security to bolster national security and strengthen the economy. SAFE advocates for expanded domestic production of U.S. oil and gas resources, continued improvements in fuel efficiency, and in the long-term, breaking oil’s stranglehold on the transportation sector through alternatives like natural gas for heavy-duty trucks and plug-in electric vehicles. In 2006, SAFE joined with General P.X. Kelley (Ret.), 28th Commandant of the U.S. Marine Corps, and Frederick W. Smith, Chairman, President, and CEO of FedEx Corporation, to form the Energy Security Leadership Council (ESLC), a group of business and former military leaders committed to reducing U.S. oil dependence.
About the Electrification Coalition
The Electrification Coalition is a nonpartisan, non-profit group of business leaders committed to promoting policies and actions that reduce America’s dependence on oil by facilitating the deployment of electric vehicles on a mass scale. The members of the Electrification Coalition are leaders of companies representing the entire value chain of an electrified transportation system.
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