Equity issues associated with U.S. plug-in electric vehicle income tax credits. (January 2022)

• Record Type: Journal Article
• Authors: Liu, Haobing; Dai, Ziyi; Rodgers, Michael O.; Guensler, Randall
• Is Part Of: Transportation research. Volume 102(2022)
• Publication Date: 2022-01
• Subjects: Plug-in electric vehicle (PEV) -- Income tax credit (ITC) -- Transportation equity -- Motor vehicle energy use and emissions; Transportation -- Research -- Periodicals; Transportation -- Environmental aspects -- Periodicals; 354.76
• DOI: 10.1016/j.trd.2021.103159
• Languages: English
• ISSNs: 1361-9209

Abstract

Abstract: This research evaluated the accessibility of federal- and states-level Plug-in Electric Vehicles (PEVs) Income Tax Credits (ITC) policy in the United States, and identified potential barriers for households with diverse income levels, family types and number of children in participation. For example, a two-adults one-child family with an annual income of $82, 600 (2019 U.S. national median income for three-people family) is eligible for only 70% of $7, 500 federal ITC. Credits are even less available for families with lower income or more children. Based on a demographic case study in Georgia, 62.1% of Atlanta households are not eligible for full federal ITC. Further complicating any policy benefits assessments is that vehicles from lower-income households (less eligible for ITCs) produce higher emissions, which would yield criteria pollutant emission reduction benefits if replaced with PEVs. The study provided a reference for policy-makers to identify potential equity issues concealed in PEV tax credit programs.