Georgia state lawmakers want consumers of vehicle electricity to pay a state excise tax similar to the one imposed for gasoline. They're also discussing a standard method of charging by energy consumed and not time spent at chargers, according to a news report.
With a pledge for $135 million in federal funds for electric-vehicle chargers at convenience stores, restaurants and other locations across the state, the state is expecting EV charging to grow rapidly, according to Capitol Beat.org. The state also has attracted large electric-vehicle manufacturing plants.
State lawmakers want to develop a standard way for retailers to generate revenue from EV charging by pricing the electricity by the kilowatt hour instead of according to the length of time a vehicle is using a charger, the news outlet said.
Under House Bill 406, Georgia would charge an excise tax on the electricity EV drivers purchase, with the Georgia Department of Revenue establishing a rate designed to generate the same amount of revenue the state collects from the gas tax, CapitolBeat.org said.
Georgia’s excise tax on gasoline this year is $0.312 per gallon, according to the Georgia Department of Revenue Excise Tax Bulletin.
Utility rates
While Georgia Power has provided the energy for many EV chargers at public locations, the state is expecting more convenience stores to enter the market in the future. The utility has offered a lower rate during the “super off-peak” evening hours of 11 p.m. to 7 p.m., according to its website. Before taxes and other extra fees, the utility charges about $0.01 per kilowatt hour for plug-in EV (PEV) electricity during the super off-peak hours, compared with $0.20 per kilowatt hour during peak hours. The lower evening price serves as an incentive to reduce outages from overloads during peak daytime hours partly because of the need for air conditioning for most of the year in the state.
It costs an EV driver in Georgia about $19 per month to charge a PEV at super off-peak prices and an 8% sales tax, according to information on the utility's website. This includes about 4,400 kilowatt hours per year and compares with $107 a month for drivers of gasoline-powered vehicles and getting 24.7 miles per gallon and paying $2.50 per gallon, the utility said.
The total cost EV drivers paid for electricity at a retail location could increase under the Georgia House bill, which gives the Georgia Public Service Commission the authority to regulate trade practices of electricity as a motor fuel and gives the Department of Agriculture the authority to regulate charging stations.
Domestic EV manufacturing
Georgia lawmakers and business leaders are proactively gearing up for an EV boom driven in part by new manufacturing in the state.
The state’s Bryan County near Savannah will be home to a new $5.5 billion Hyundai manufacturing plant scheduled to open in 2025, the Associated Press reported. Five suppliers to Hyundai have announced $1.8 billion in new investments in production centers in the area, including an auto-parts metal stamper, Sewon Precsion Industry Co., which plans to locate a new 840-employee plant in Rincon.
The Georgia Hyundai plant, scheduled to open in 2025 with over 8,000 employees producing as many as 300,000 EVs annually is just one indication of growing interest in the new vehicle energy, said the report.
Inflation Reduction Act
The facility’s development coincides with the Inflation Reduction Act’s domestic manufacturing incentives designed to create manufacturing jobs in the U.S. Incentives include:
- A Department of Energy Advanced Technology Vehicle Manufacturing Loan Program, providing $3 billion for loans to manufacture clean vehicles and components.
- $2 billion for Domestic Manufacturing Conversion Grants to fund retooled production lines for cleaner vehicles.
- A new Advanced Manufacturing Production Credit to support U.S. domestic production and sale of batteries and other components for clean energy projects.
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