Hola,

As the Tax Heiress, I love to share all the latest Tax Accountant in Atlanta gossip and, this year, one interesting topic is electric car credits.

Many electric cars are more expensive than their gasoline counterparts. Small two-door models often sell in the $20-30,000 price range. But that hasn’t stopped them from selling like hot cakes here in Georgia.

In order to explain our booming plug-in vehicle business, we’ve got to look past the price tag and into state policy! The federal government already grants a tax credit totaling up to $7,500 to new electric car owners. For years, Georgia has offered an additional $5,000 credit on top of that. These credits alone would be enough to tempt buyers away from the pump.

For an enterprising shopper, a $24,000 electric car may end up costing only $11,500 after credits – less than half its sticker price. Consider the money saved on the purchase of gasoline on top of that and electric car ownership may seem like a no-brainer.

Starting July 1, however, all this may change. A good number of our state legislators have got to thinking that those that can afford to buy a fancy electric car shouldn’t be rewarded with tax credits. The latest bill in the struggle to crack down on electric car credits, HB170: The Transportation Funding Act of 2015, recently made it all the way to Governor Deal’s desk. Deal has previously voiced his support for the policies so the chances of the bill becoming a law are pretty darn high.

This bill would not only eliminate the state credit altogether. It would also actually enforce a new $200 anual license fee on personal alternative-fuel automobiles, introduce a new by-the-gallon gasoline tax for conventional vehicle drivers and take away state tax credits for aviation fuel that have long attracted airlines to Atlanta. Eventually, the earnings generated by these laws would be used to build and maintain our admittedly shoddy Georgia roadways. Can’t say I’m not looking forward to that!

Ultimately, what this means for a consumer is that if you’re a Georgia resident looking to collect the $5,000 tax credit, you’ve got a few months left to act before the credits expire and you should get to a dealership pronto!

In the future, when you’re looking for straight-forward state tax breaks, the alternative-fuel vehicle credit won’t be one of them so you may want to consider hiring a Tax Expert Atlanta(like me!) to look over your income and your purchases.

Smooches,

Buffie the Tax Heiress