States adopt mixed strategies to balance EV incentives and road funding

As electric vehicles reduce gas tax revenues, many states are charging EV owners additional fees to help fund road maintenance.

Adam Aton reports for POLITICO.

In short:

• Pennsylvania will impose a $250 annual fee on electric vehicles, one of the highest in the U.S., as states seek to offset declining gas tax revenues.
• Thirty-nine states have implemented similar fees, with some also cutting other EV incentives, complicating the push toward cleaner transportation.
• Critics argue these fees could hinder EV adoption without significantly addressing transportation funding gaps.

Key quote:

"We’re not at a point where electric cars are in any way, shape or form quote-unquote ‘stealing’ from the gas tax."

— Frank Hornstein, Democratic chair of the Minnesota House Transportation Committee.

Why this matters:

States face a dilemma: they need new revenue sources as gas tax income drops, but increasing costs for EVs may slow their adoption, jeopardizing emissions reduction goals.