Electric Cars: Government Participation

Government Participation

To help introduce electric vehicles into the market, both the federal and state governments have teamed together to create motivational incentives for the purchasers of EVs.

In the state of Florida, for example, a law was passed that requires all car sellers to provide customers with information about the state's EV incentives package. Some of these incentives included a sales tax exemption for up to five years, protection from any surcharge on insurance premiums without actuarial data, and no more emission inspections.

The states of California and New York both passed legislation that required 2% of all cars sold in 1998 to be zero emissions vehicles. Automakers succeeded in appealing the New York mandate, but the California mandate still stands. In fact, 10% of all cars sold in California in 2003 have to be zero emissions vehicles.

The federal government provides subsidies for many types of electric vehicles. This helps lower the cost of EVs and make them more affordable for the average consumer. Many state governments also provide huge tax incentives for companies who purchase fleets of EVs.

The state and federal governments hope that these incentives will increase the popularity of EVs and lower the pollution levels in states like California.