Policy Report

Alternative-Fuel Vehicles & Washington State

Impact of Eliminating the Alternative-Fuel Vehicle Tax Exemption on the Washington State Economy, commissioned by Securing America’s Future Energy (SAFE) in partnership with the Electrification Coalition, and prepared by Keybridge Research LLC, examines the economic effects of a possible elimination of the electric vehicle tax exemption on Washington’s economy.

Washington currently offers an exemption of its motor vehicle sales and use taxes for all-electric vehicles. The exemption has played a significant role in boosting Washington’s all-electric vehicle penetration rate to one of the highest rates in the country—1.2 percent of all new light duty-vehicle sales in 2014.

The report’s analysis finds that if the state’s Alternative Fuel Vehicle Tax Exemption were eliminated, Washington consumers would spend an additional $40 million over the next five years on gasoline. That figure would increase by an additional $191 million through 2030. With fewer electric vehicles on Washington roads, the state's businesses and consumers would be more vulnerable to the negative effects of high and volatile global oil prices.

Featured Quote

“Ultimately the consumer will make the judgment about where this country goes, but from the standpoint of public policy we can set the stage for it."

Sen. Byron Dorgan
AP, November 16, 2009