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Electric vehicle sales tax should be paused for two years, Governor Whitmer says

A Tesla Model S electric vehicle is charged at a car dealership in Shanghai, China, in March 2015.
Johannes Eisele
/
AFP/Getty Images
A Tesla Model S electric vehicle is charged at a car dealership in Shanghai, China, in March 2015.

Governor Gretchen Whitmer was in Grand Rapids on Wednesday to promote a plan to exempt electric vehicles from the state's sales tax. The plan is part of the governor's budget proposal for next year.

The plan would cost the state about $48 million in lost revenue, according to the governor's budget proposal.

The governor said she wants the state sales tax break in place as an incentive while carmakers in the state ramp up their electric vehicle production.

"It's really exciting, what's happening in the auto industry, and in the American auto industry in particular. They're moving quickly. There's going to be offerings of a variety of different price points, so that people can find the vehicle to meet their needs."

The Michigan program would save buyers up to $2,400 for certain electric cars.

The federal government already offers tax credits on electric vehicles worth up to $7,500.

Dustin Dwyer is a reporter for a new project at Michigan Radio that will look at improving economic opportunities for low-income children. Previously, he worked as an online journalist for Changing Gears, as a freelance reporter and as Michigan Radio's West Michigan Reporter. Before he joined Michigan Radio, Dustin interned at NPR's Talk of the Nation, wrote freelance stories for The Jackson Citizen-Patriot and completed a Reporting & Writing Fellowship at the Poynter Institute.