How EVs May Change Gas Tax Structures
Switching from gas to electric cars is easier and cheaper than ever. Not only do EVs make driving more sustainable, but they also save you time and money at the gas pump. Most electric vehicles are also eligible for $7,500 federal tax credit. They’re also more pleasant to drive—driving more quietly and delivering torque immediately. Maintenance is also easier, less frequent, and cheaper. However, some worry that the federal gas tax might add some costs to driving electric. Learn more about Chevy electric cars now at Mike Anderson Chevy Chicago!
The Federal Gas Tax And Electric Vehicles
As more and more drivers make the switch to electric vehicles, there’s some concern about the decreasing use for the federal gas tax. This tax is used to help pay for transportation projects and keep roads and highways in good condition. In fact, fuel taxes make up 84 percent of federal and 29 percent of state highway funds. Because EV drivers are not paying for gas, they are also not paying the federal gas tax.
So, how much is the federal gas tax? Right now, the federal tax on gasoline is 18.4 cents per gallon, while the average state gas tax is 31 cents. Currently, this tax is not applied to EV drivers, but that may change in the coming years. It is possible that Congress develops a different tax that EV drivers pay to help contribute to transportation projects and road maintenance, like adding a tax on EV charging stations. Some states might also institute a program, like the Illinois EV registration fee.
Save Money By Driving Electric
You no longer need to pay for gas when you drive electric, which can mean huge savings. On average, save between $2,000 and $4,0000 on gas every single year. All electric vehicles eliminate gas costs altogether, but even plug-in hybrids (PHEVs) eliminate a significant portion of your gas bill as well. Find out how much you would save with an electric Chevy with this EV gas savings calculator.
In addition to the savings from eliminating the need for gas, electric vehicles earn you major savings on maintenance costs. As an electric vehicle, it doesn’t require oil to lubricate the engine, eliminating the need for oil changes. Just that alone means huge savings over time. Add in the fact that the same is true of other expensive engine work and brakes won’t wear as easily, and this can add up to $6,000 to $10,000 in maintenance savings over the life of the EV. Plus, EV charger installation is easy, affordable, and sometimes eligible for extra tax incentives.
Visit Mike Anderson Chicago!
At Mike Anderson Chevrolet of Chicago, we are one of the area’s premier Chevrolet dealerships. Founded in 1969 by Bob Anderson, Mike Anderson Chevy Chicago is proud to continue to serve the community with a great selection of vehicles and top-notch customer service to everyone who walks through our doors. Chevy financing is also available for qualified purchasers. Stop in to learn more about the amazing savings of driving electric, including how to claim your $7,500 federal tax credit, today!