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Is A Tax On Electricity (kWh) Consumed The Best Way to Supplement the Fuel Tax for Electric Vehicles?

EV Adoption

As sales of electric vehicles begin to reach significant numbers across the US, states are exploring approaches to replace lost tax revenue since EV drivers don’t pay fuel taxes as drivers of gas-powered cars do at gas stations. Unfortunately there is currently no simple and agreed upon best replacement for the fuel tax.

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kWh Billing and New EV Charging Tax Policies: What You Need to Know

Blink Charging

Just as conventional internal combustion engine (ICE) cars measure fuel by the gallon, EV owners measure their energy consumption in kWh. This metric quantifies the energy transferred to an EV’s battery during charging, similar to filling up an ICE vehicle. In Iowa , the kWh tax has already been in effect since July 1, 2023.

Tax 52
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MIT Energy Initiative report on transforming the US transportation system by 2050 to address climate challenges

Green Car Congress

The report addresses topics related to the evolution of vehicle technology and its deployment, the development of alternative fuels and energy sources, the impacts of driver behavior, and the implications of all of these factors on future GHG emissions in the United States, Europe, China, and Japan.

MIT 150