Some of the biggest incentives for owning an electric or hybrid vehicle in both Georgia and all of the U.S. are about to expire.
Starting Sept. 30, alternative fuel vehicle owners will no longer be exempt from paying tolls or using HOV lanes solo. A 2015 federal law that also granted tax credits to eligible buyers of certain electric vehicle models is reaching its 10-year deadline.
“For alternative fuel vehicles, the exemption in the HOV lane that they have enjoyed for the past 10 years is expiring,” said Natalie Dale, GDOT spokesperson. “There was always within that law a 10-year sunset.”
Dale noted that EV drivers can still use HOV lanes — if they carpool. “Carpooling on those lanes, that is a great way to continue to be able to use the HOV with your AFV — it’s to not be that SOV, that single occupancy vehicle,” she said.
Yes, Dale did chuckle during that application of alphabet soup. The government sure loves its acronyms.
Toll-free driving is another perk that is going the way of the dinosaurs. The State Road and Tollway Authority is notifying about 16,000 Georgia drivers who currently have AFV exemptions in the Peach Pass Express Lanes. SRTA is sending letters, posting signage at charging stations and drivers, and using social media to get the word out, spokesperson Ericka Bayonne explained.
State officials noted that the changes in these lanes have to be uniform nationwide because the interstate system is connected. So even if Georgia wanted to continue the various driving exemptions for AFV drivers, doing so on its own would not be federally compliant.
Another major change on Sept. 30 comes for federal EV tax incentives. The current EV tax credit of up to $7,500 for qualifying buyers and car models will end. While this could mean bad news for buyers from October onward, it also creates a big opportunity for them beforehand.
“Run to your dealership right now,” said John Vincent, U.S. News and World Report senior vehicle testing editor. “In addition to getting the tax break right now, they’re also offering a lot of incentives to move these things off their lots.”
The model year is coming to an end, too, so the EV and hybrid market should be ripe with reasons for interested drivers to buy them.
Vincent noted that AFVs have faced major headwinds in the U.S. market, which he said lags behind other nations in its drivers buying these vehicles. One problem, he said, has been a lack of charging stations. But with more cars becoming more compatible with the Tesla-operated North American Charging Standard system, supply is starting to meet demand. And popularity has increased.
Vincent said the technology, particularly the range of the vehicles, is improving at a rapid pace. So he believes leasing EVs is better than owning them.
Vincent added that manufacturers themselves won’t immediately shift course because of the expiring tax credits. “Automakers operate on five-to-10-year product plans, and they can’t constantly react to one year at a time,” he said. “They can’t change what’s coming off an assembly line next year based on the politics. So, they’re taking a longer view of this.”
Washington, D.C.’s tide seems to be pushing against EVs and hybrids now, but turnover in elections can change that. Vincent said he is surprised at how influential the political climate has been in the auto terrain of late.
For now, the market itself may steer drivers in the direction of AFVs instead of taxes and perks doing it. Nonetheless, current and prospective EV and hybrid owners need to take notes on the changes in both lane and buying privileges.
Doug Turnbull covers the traffic/transportation beat for WXIA-TV (11Alive). His reports appear on the 11Alive Morning News from 6 a.m. to 9 a.m. and on 11Alive.com. Email Doug at dturnbull@11alive.com.
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