Washington legislature passes EV credit tax targeting Tesla
Apr 29, 2025, 1:25 PM
A Tesla is parked in a parking lot. (FIle photo: Damian Dovarganes, AP)
(FIle photo: Damian Dovarganes, AP)
passed the Washington State Legislature over the weekend.
SHB 2077 is an EV credit tax bill that slaps new excise taxes on car manufacturers that either sell or bank more than 25,000 zero-emission vehicle (ZEV) credits per year. Translation? If you鈥檙e making serious money off selling the idea of going green, the state wants its cut.
Sold credits get taxed at 2%. Banked ones? A juicier 10% based on average value. The idea is to use that cash to help Washingtonians afford EVs and to boost charging infrastructure.
Supporters say it鈥檚 about fairness, preventing companies like Tesla and Rivian from making a fortune selling credits to automakers that don鈥檛 produce EVs themselves.
鈥淲e never intended for this program to be a source of windfall profits for one manufacturer,鈥� Rep. Joe Fitzgibbon (D-Seattle), the bill’s prime sponsor, said as by KING 5.
Critics argue Tesla tax could scare off EV investors
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Opponents warn it could backfire. Taxing what鈥檚 essentially a regulatory tool, they argue, might scare off EV investments and raise prices for consumers.
However, according to KING 5, the bill will only affect Tesla鈥攆or now.
础听聽projects the bill could bring in $78 million over the next two years and a whopping $400 million over the following four.
Contributing: Matt Markovich, 成人X站 Newsradio; Julia Dallas, MyNorthwest
