AUGUSTA — Sen. Justin Chenette has proposed a $1,500 tax credit to incentivize the purchase of electric vehicles within the state of Maine.
LD 604, An Act to Create an Electric Vehicle Tax Credit, will be heard before the Taxation Committee on Wednesday.
“With instability at the federal level, states must step up to find ways to reduce emissions, stimulate the green economy, and lower our reliance on fossil fuels,” said Sen. Chenette. “This electric vehicle tax credit would go a long way to reducing costs for consumers to make the shift.”
The bill provides an income tax credit for the purchase of a new plug-in hybrid or an all-electric vehicle. Eligibility for the tax credit will be based on the federal version of the income tax credit. This new state tax break will be worth $300 plus $50 for each kilowatt-hour of battery capacity in excess of 5 kilowatt-hours up to $1,500 total.
Many states have various financial incentives for electric vehicles, but Maine does not. Currently, the federal government offers an income tax credit that is worth between $2,500 to $7,500, depending the make and model of the vehicle.
The public hearing is set for 1 p.m. Wednesday, Feb 20 in Room 127 of the State House.