Electric Vehicle Frequently Asked Questions

TAXES,INSURANCE AND REGISTRATION

Are there any tax incentives for EVs?

Yes, at most levels of government. The incentives can include rebates, lower registration fees, special license plates, the use of HOV lanes, special parking spaces and free public charging.

However, a few states actually charge additional fees for EVs to offset the loss in fuel tax revenue. It pays to do your own research before buying or converting an EV, as incentives can sometimes amount to a substantial portion of the vehicle cost.

Enough of the text of some incentives is reproduced below to "get the gist" of them. Be sure to check your state's statutes and tax code for the most up to date information.

Credit for Electric Vehicles

You may be allowed a tax credit if you placed a qualified electric vehicle in service during the year.
Qualified electric vehicle.
This is a motor vehicle that:

1. Has at least four wheels and is manufactured primarily for use on public streets, roads, and highways,
   
2. Is powered primarily by an electric motor that draws its power from rechargeable batteries, fuel cells, or other portable sources of electrical current,
   
3. Is originally used by you, and
   
4. Is acquired for your own use, not for resale.
   

Form 8834 can be found at http://www.irs.gov

Summary of information taken from the IL EPA web site:
Rebate towards the purchase or conversion of an alternative fuel vehicle. Any business, organization, or individual located in the state is eligible to apply for a rebate under this program. The amount of a rebate is 80 percent of the additional cost of acquiring an alternate fuel vehicle compared to the cost of the same type of conventional vehicle, 80 percent of the additional cost of the domestic renewable fuel compared to the cost of gasoline or diesel fuel, or 80 percent of the cost of the conversion. Only one type of rebate is allowed per vehicle. The rebate amount is limited to 4,000 per vehicle. An applicant may apply for rebates for up to 300 vehicles and for only 150 vehicles at any one location. Any business, organization, or individual located in the state is eligible to apply for a rebate under this program.

Official IL state reference is here.

IL section contributed by John McCain
1/25/2001

Colorado Incentives
Colorado Tax incentives are taken from the State Dept of Revenue. You can find it at http://www.revenue.state.co.us

(look under FYI Documents, then select income tax, then select "Income 09")

A small portion of the text is reproduced below:

Alternative Fuel Income Tax Credits(Revised 10/00)

ALTERNATIVE FUEL VEHICLE CREDIT For tax years beginning on or after July 1, 1998, Colorado income tax credits are available for the purchase of an alternative fuel vehicle, for a motor vehicle that is converted to use alternative fuel, or for the replacement of the power source with a power source that uses alternative fuel. ( C.R.S. ?39-22-516) To qualify, the vehicle must be titled and registered in Colorado and it must be used in connection with a business. If a vehicle is used part of the time for business use and part of the time for personal use, the credit must be prorated in proportion to the percentage of time during the tax year that the motor vehicle was used for business purposes.

For tax years beginning on or after July 1, 2000, alternative fuel vehicles used by individuals for personal use also qualify for this credit.

The credit is a percentage of a. the difference between the cost of the vehicle and the cost of the same or most similar vehicle that uses a traditional fuel, or b. the cost incurred in converting the vehicle to an alternative fuel, or c. the difference between the cost of replacing the power source and the cost of the same or most similar power source that uses a traditional fuel. The percentage of the credit depends on the certification level of the vehicle and the year in which the expenditure is made.

A vehicle can qualify for this credit only one time. The credit for EV's ranges from 50 to 85 percent of the conversion cost.

Qualified entities may apply for this credit with the following forms: "Alternative Fuels Rebate Instructions" (DR 0166)
"Alternative Fuels Rebate Forms" (DR 0167)
"Dealer or Installer Certification Form" (DR 0168)
Colorado information courtesy of Chuck Hendrick
Added 7/17/02
Georgia Incentives
"A tax credit is allowed against the tax imposed under this article to a taxpayer for the conversion of a conventionally fueled vehicle to a converted vehicle that is registered in the State of Georgia. The amount of the credit shall be equal to 10 percent of the cost of conversion, not to exceed ,500.00 per converted vehicle.

The Georgia tax information can be found at the state website under "government" at http://www.georgia.gov

(look under FYI Documents, then select income tax, then select "Income 09")

A small portion of the text is reproduced below:

Alternative Fuel Income Tax Credits(Revised 10/00)

Who insures EVs?

Some EV drivers have encountered problems obtaining insurance. This largely stems from the agents simply not knowing about EV's, and/or not being willing to look for the information. To be prepared for this eventuality, it is best if you come to the insurance agent's office with certain information handy. Specifically, have the name and number of another agent for the same company, who is providing a policy of the same sort as what you are interested in to another EV enthusiast elsewhere. This information is available from the EV discussion list. Post your question to the list, and several will be willing to provide contact information for their insurance agents. This information should allow your agent to call and get all the particulars on how to insure that vehicle. If you still encounter difficulty, you may need to try a different company.

The following are companies known to insure EV's. If you encounter problems, contact the EV discussion list (see FAQ section 1 for information on joining and posting). The people there who are currently using these companies will make every effort to help you.

AMICA: Known to have issued liability policies. 1-800-24-AMICA
Farmers: Known to have issued liability, comprehensive, and declared value policies.
Nationwide: Known to have issued liability and other policies (no detail about the level of coverage on the "other" policies).
State Farm: Known to have listed liability policies. Lists the citicar in their rate manual.
USAA: Known to have issued liability policies.
Westfield National: Known to have issued liability and declared value policies.

Sometimes, despite having all of the appropriate information, an agent will still refuse to insure an EV. The best recourse is just to say "OK, thanks anyway," and proceed to another agent. Sometimes a different agent who is willing to dig for the information can give you what you need, even if they work for the same company as the one who refused to insure you.

Note that ANY agent can sell you basic liability insurance, and the propulsion method is irrelevant. Once the agent is willing to call around, they will likely have no problems providing comprehensive or a declared value policy. There is even data that shows a lower accident rate than for ICE cars - probably because EV's are driven less distance, but also because of the care taken by their drivers.

Are there any special fees or requirements to register an EV?

Notice to residents of Oklahoma: While there are no special registration requirements, State law prohibits converting a vehicle to run on electricity unless you are a "certified electric vehicle technician." The law explicitly prohibits installing, modifying, or restoring motors, controllers, power sources, drive trains, and charging systems. The state has study guides for propane and CNG conversion certification exams, but not for the EV exam. The only available training material is a 5-day, 40-hour course at Mid-Del Technology center in Midwest City. The test includes points on Oklahoma law. The law does allow an owner to perform normal maintenance on an EV, so long as it does not involve any manipulation of any high voltage circuitry. On a further note, the exam is relatively simple for anyone who is familiar with EV's and their components.