Establishing a plug-in vehicle tax credit in North Carolina would boost the state’s GDP by $52 million over the next 16 years, while reducing the impact of fluctuating gasoline prices, says a new study.

The study, “Impact of Introducing an Electric Vehicle Rebate on the North Carolina State Economy,” was published by Keybridge Research, and was commissioned by Securing America’s Future Energy in partnership with the Electrification Coalition.

North Carolina currently offers no financial incentives for EV purchases. In fact, EV drivers must pay a $100 annual fee.

The report concludes that a $2,500 state tax credit for EVs would save North Carolina drivers $50 million in gasoline bills over the next five years, partially offset by $20 million in increased electricity consumption. Those savings would increase to $233 million through 2031.

“Plain and simple, EVs cost less to drive a mile down the road than ICE vehicles, even with current low gasoline prices,” said Keybridge Research President Dr. Robert F. Wescott. “The bump in state GDP from increased EV 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.”

Source: Securing America’s Future Energy