COLUMBUS, OH – On December 17th, state Senators Sean O’Brien (D-Bazetta) and Michael Rulli (R-Salem) announced legislation to encourage the purchase of electric vehicles in Ohio. The bill would create a $500 sales tax credit for the purchase of one EV for personal use; a $1,000 sales tax credit for each of up to 10 vehicles for commercial use; and a $1,500 sales tax credit for the construction of either commercial or personal use charging stations.
The legislation is intended to kick-start Ohio’s emergence in the world of EVs, and the incentives will sunset after five years. The bill will soon be assigned to a committee for consideration by members of the Ohio Senate.
On December 5, Governor Mike DeWine announced a $2.3 billion investment being made through GM and LG Chem that will bring 1,100 new jobs to the Lordstown area. The new factory will focus on the mass production of battery cells for future battery-electric vehicles. In November, it was announced that Lordstown Motors, a startup electric truck manufacturer, had purchased the plant and plans to start production in 2020. Electric vehicles are providing a new lease on life for the Lordstown community.
"We see an opportunity to make Ohio the EV capital not only of the country, but the world, said Sen. Sean O’Brien. While this bill is just one step along the path toward achieving that, we feel it is an important one."
According to DSA, there are 107,000-plus people employed in the auto industry in Ohio. Automobiles are our number one export. The auto industry, driven by hundreds of billions of dollars of investment, is transforming. Clean Fuels Ohio is encouraged by this step in the right direction to keep Ohio relevant.
“Greater adoption of EVs and other advanced fuels and technologies does more than help grow tech startups, manufacturing, and jobs of the future,” said Sam Spofforth, executive director of Clean Fuels Ohio. “Data from states with higher EV ownership rates show that growth in electricity load from EVs can benefit all utility customers (including those who don’t own an EV) as long as utilities are allowed to partner with EV charging equipment makers to invest in more charging, and we manage new flexible loads with demand response and other strategies. We know Ohio’s utilities and regulators are moving in this direction and that’s encouraging.” According to a recent Reuters article, “global automakers are planning a $300 billion surge in spending on electric vehicle technology over the next five to 10 years, with half the money targeted at China, accelerating the industry’s transition from fossil fuels and shifting power to Asian battery and electric vehicle technology suppliers.”
Electric vehicles’ market share in the U.S. increased 29% from 2016 to 2017 and 75% from 2017 to 2018. By 2020, most major auto manufacturers will offer electric cars.
It’s clear that auto companies have accelerated the shift to electrification. If Ohio wants to remain competitive, then electric vehicles and battery storage must continue to be part of the conversation.
Clean Fuels Ohio is a state wide non-profit organization that works to increase the use of alternative transportation fuel. Headquartered in Columbus, Clean Fuels Ohio works extensively with fleets and industry partners around the state to assist in the transition away from traditional gasoline and diesel fuels.