Bill Overview
Title: Michael F. Donoughe Tax Credit for Off Road Electric Vehicles Act
Description: This bill allows a new tax credit for new off-road plug-in electric vehicles. The amount of the credit in a taxable year is the lesser of 10% of the cost of such vehicle, or $2,500. The bill defines a new qualified off-road plug-in electric vehicle to include any vehicle that has a capacity of not less than 6 kilowatt hours (currently, 7 kilowatt hours), has a dry weight of less that 3,500 pounds, has 3 or more wheels and 1 or more seats, is designed to be used primarily on rough terrain, and is capable of achieving a speed of 40 miles per hour.
Sponsors: Rep. Phillips, Dean [D-MN-3]
Target Audience
Population: People who are potential purchasers of new off-road plug-in electric vehicles
Estimated Size: 200000
- The bill targets new buyers of off-road plug-in electric vehicles.
- Off-road vehicles are typically used for recreation, farming, construction, and other specialized activities.
- The target population would include both individual consumers and businesses who use or have a need for such vehicles.
- The global market for off-road EVs is expanding due to increased interest in sustainable vehicles for recreational and utility purposes.
Reasoning
- Off-road vehicles are often expensive and considered luxury or utility items, which means not every American owns or plans to purchase one.
- The tax credit may benefit a range of users from hobbyists in rural areas to businesses needing utility vehicles.
- Adoption rate of off-road EVs in the US is likely to be higher in specific regions with recreational areas and rural demographics.
- $120,000,000 for year 1 could support up to 48,000 vehicle purchases (calculation: $120,000,000 / $2,500 max credit).
- The policy is likely to incentivize those sitting on the fence about making a purchase, particularly individuals or businesses already inclined towards sustainable options.
Simulated Interviews
Software Engineer (California)
Age: 34 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I think the tax credit is a great incentive for people like me who are environmentally conscious.
- This will lower the entry cost barrier significantly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Ranch Owner (Texas)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- The credit would help reduce costs for our operations.
- Switching to electric might save money in the long run with reduced fuel costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 4 |
Outdoor Guide (Colorado)
Age: 28 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- I am excited about cost incentives for electric off-road vehicles.
- It aligns with both personal and client interests in sustainable recreation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 4 |
Construction Manager (Pennsylvania)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- A tax credit could make electric vehicles financially viable for our projects.
- There’s also a push for reducing emissions on job sites.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 4 | 3 |
| Year 20 | 3 | 3 |
Outdoor Blogger (Florida)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- It's a perfect fit for my lifestyle and audience, though I wasn’t planning a purchase just yet.
- This might push me towards trying an EV off-road vehicle sooner.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Farmer (Oregon)
Age: 25 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I'm interested, but the high cost is a barrier.
- Tax credit would help make electrics a viable option.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Retiree (Arizona)
Age: 57 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- With a fixed income, this credit could make the shift to an EV more accessible.
- I've been wanting to reduce my carbon footprint.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 4 |
Automotive Technician (Michigan)
Age: 40 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- Tax credits will drive more business as people transition to EVs.
- It's going to diversify the types of vehicles I get to work on.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Small Business Owner (ATV Rental) (Nevada)
Age: 30 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- I see potential in reducing operational costs and appealing to eco-conscious tourists.
- Financing a switch to electrics with tax credits is appealing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 2 |
Park Ranger (Montana)
Age: 39 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- This policy encourages sustainable choices which aligns with park goals.
- Could help update our fleet with greener options if budgets allow.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Cost Estimates
Year 1: $120000000 (Low: $80000000, High: $140000000)
Year 2: $120000000 (Low: $80000000, High: $140000000)
Year 3: $120000000 (Low: $80000000, High: $140000000)
Year 5: $120000000 (Low: $80000000, High: $140000000)
Year 10: $120000000 (Low: $80000000, High: $140000000)
Year 100: $120000000 (Low: $80000000, High: $140000000)
Key Considerations
- The adoption rate of off-road electric vehicles will determine the actual fiscal impact.
- Market behavior and consumer response to the credit could differ from projections.
- Technological improvements in batteries and reductions in vehicle costs over time could influence vehicle affordability and attractiveness, thus affecting credit uptake.
- Adoption trends across regions that favor off-road activities may skew towards higher utilizations.