Hi All,
Plug-in hybrid electric vehicles (PHEV)
Battery electric vehicles 4 wheeler (BEV)
A summary of all major incentives currently in effect below - just keeping everyone up to speed on why BEV's reached 1,000,000 units sold in 50% of the time it took PHEVs to reach 1,000,000 units sold:
EV purchase incentives are listed below, focusing primarily on countries with higher-than-average EV market shares.
Electric cars in China enjoy an exemption from acquisition tax and from the excise tax, normally based on engine displacement and price (Mock and Yang, 2014). The value of the incentives was in the range of 35 000 Yuan renminbi (CNY) to CNY 60 000 (USD 6 000 to USD 10 000) to purchase electric cars (Lutsey, 2015). The analysis of Mock and Yang (2014) suggests that the lower-end estimate is best suited for PHEVs, while the higher incentive level is more likely to be applicable to BEVs.
France began offering in 2013 purchase incentives of 6 300 euros (EUR) (USD 7 100) for BEVs (cars emitting less than 20 grammes of CO2 per kilometre [g CO2/km]) and EUR 1 000 (USD 1 100) for PHEVs (vehicles emitting between 20 g CO2/km and 60 g CO2/km) through its bonus/malus feebate scheme (MEEM, 2016a). Scrapping diesel vehicles allows a supplementary bonus of EUR 10 000 (USD 11 000) for BEVs and EUR 3 500 (USD 4 000) for PHEVs (MEEM, 2016b).
Lutsey (2015) summarised Japanese incentives, indicating that subsidies are based on the price difference between an EV and a comparable gasoline car, with a maximum of 850 000 yen (about USD 7 800). Mock and Yang (2014) indicated that incentives amounted to EUR 3 000 to EUR 5 000 (USD 3 300 to USD 5 500) for typical BEVs and PHEVs.
In the Netherlands, in 2016, cars emitting zero CO2 at the tailpipe are exempt from paying registration tax. For other cars there is a differentiated taxation scheme with five levels of CO2 emissions with progressively increasing taxation per g CO2/km. PHEVs qualify for the first level (below 80 g CO2/km) and pay EUR 6 per g CO2/km. Diesels emitting more than 70 g CO2/km also pay EUR 86 per g CO2/km (EVI, 2016a and Energielabel, 2016). This kind of structure provides significant benefits for both BEVs and PHEVs compared with vehicles powered by ICEs, with a steep growth for models having ICEs with emissions ratings above 106 g CO2/km. The condition for exemption from the registration tax has become stricter since 2013, when it started to be fully coupled with CO2 emission performances (Energielabel, 2016).
In Norway, EVs are exempt from purchase taxes (about 100 000 kroner [NOK] – USD 12 000) (OECD, 2015). BEVs are also exempt from VAT (set to 25% of the vehicle price before tax). The VAT exemption does not apply to PHEVs (Mock and Yang, 2014).
In Portugal, BEVs are exempt from vehicle registration (about EUR 1 250, or USD 1 400) and circulation taxes (Saldopositivo, 2014). Scrapping existing vehicles for a selection of BEVs also entitles buyers to a bonus of EUR 4 500 (USD 5 000) (Apambiente, 2016; IMT, 2016). PHEVs are not eligible for specific incentives.
In Sweden, passenger vehicles with emissions levels lower than 50 g CO2/km have been granted a 40 000 kronor (roughly EUR 4 000 or USD 4 400) rebate since 2011.
In the United Kingdom, BEVs receive a purchase incentive up to 4 500 pounds (GBP) (USD 6 300) for cars and GBP 8 000 (USD 11 200) for light commercial vehicles; PHEVs below GBP 60 000 (USD 84 000) receive incentives equal to GBP 2 500 (USD 3 500) (GOV.UK, 2016a).
In the United States, EVs enjoy tax credits capped at USD 7 500 at the national level. PHEV models with all-electric ranges (18 km to 40 km) receive credits of USD 2 500 to USD 4000; BEV models and some PHEV models with relatively high all-electric range (e.g. Chevrolet Volt) receive the maximum USD 7 500 credit (Lutsey at al., 2015). States also apply purchase incentives (AFDC, 2016). For instance, California offers incentives of USD 2 500 for EVs and USD 5 000 for FCEVs (or more for low-income consumers); Colorado offers an income tax credit of up to USD 6 000; Connecticut offers up to USD 3 000 in rebates and Delaware up to USD 2 200. Jin, Searle and Lutsey (2014) estimated a range between USD 1 000 and USD 6 000 for BEV and PHEV purchase incentives at the state level, and an average value for the incentive offered to EV purchasers across the United States close to USD 1 000, both for BEVs and PHEVs.
EV use and circulation incentives
Examples of countries exempting EVs from circulation/ownership taxes are summarised in the list below.
In China, EVs are exempted from circulation/ownership taxes.
BEVs weighing less than 2 tonnes are exempted from annual circulation tax in Denmark.
In France, BEVs and some PHEVs are exempted from annual taxation for company cars.
In Germany, BEVs and PHEVs are exempt from circulation tax for a period of ten years from the date of their first registration.
In the Netherlands, zero-emission cars are exempt from paying road taxes. In 2015, this also applied to PHEVs emitting less than 50 g CO2/km. As of 2016, they are subject to charges that are only 50% of the road tax for a regular car.
Japan has EV exemptions from annual tonnage tax and reductions for automobile tax.
EVs are exempted from road taxes (based on CO2 emissions) and part of company car taxes in Sweden.
In the United Kingdom, the excise duties starting from the second year of purchase are based on the CO2 emissions per kilometre ratings: BEVs and some PHEVs are exempt (this is also the case for the first year, due to purchase incentives). BEVs are also exempt from company car taxes.
In the United States, states apply annual fees and provide exemptions for EVs. Furthermore, in Wuhan, China, tolls on city roads, bridges and tunnels are waived from 2014 to 2016. In Denmark, municipalities can differentiate charging payments for parking lots up to 5 000 kroner (DKK) (USD 735) per year to give preferential treatment to EVs. In Germany, 2015 framework legislation allows municipalities to offer free or dedicated parking. Waivers of fees (e.g. tolls, parking, ferries) are widely available in Norway and are also applied by local governments in Japan. In the United Kingdom, BEVs and PHEVs are eligible for a full waiver of the London Congestion Charge.
Electricity supply reductions/exemptions, leading to lower operational costs for EV users, exist in France, Japan, Norway, the United Kingdom, the United States, South Korea and Portugal. In Wuhan (China), new energy vehicles get free recharging in designated places from 2014 to 2016. In Denmark, companies that supply EV charging on a commercial basis can receive an electricity tax rebate that amounts to approximately DKK 1 (USD 0.15) per kWh.
Waivers on access restrictions
Examples of waivers of access restrictions provided to EVs include access to bus lanes in Ontario (until 2015) (OECD, 2015) and in Norway (Lutsey, 2015), as well as in some French cities (EVI, 2016). In the United Kingdom, Nottingham, Bristol, Milton Keynes and London, as winners of the Go Ultra Low City Scheme, are entitled to give plug-in car owners extra local privileges, including access to bus lanes in city centres (GOV.UK, 2016). The framework legislation introduced in 2015 in Germany also enables local administrations to allow EV access to bus lanes and other restricted areas (Mock and Yang, 2014). Waivers of access restrictions can also include access to HOV lanes and are implemented at the local level in Spain (BOE, 2015) and the United States (EVI, 2016).
Over the past decades, China adopted policies restricting the availability of license plates in its major urban agglomerations. These "increment control" measures on motor vehicles consist primarily of lotteries and/or auctions issuing new license plates up to a certain annual quota. The city of Guiyang adopted polices restricting access to certain areas of the city for vehicles not having specific plates (issued via lottery systems and/or auctions).
Cheers,
Super Ninja
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