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Electric Vehicles to Cost State Billions Over the Next Decade

The Illinois Economic Policy Institute (ILEPI) has released a report on the economic effects of Illinois’ recent focus on increasing electric vehicle production and use. Specifically, the report claims that rising fuel efficiency standards and the recent push to popularize electric vehicles will mean a loss to Illinois of $4.3 billion in tax revenues that would traditionally be used to support state and federal transportation projects.


The report’s author says that this loss primarily comes as a result of Illinoisans buying decreased amounts of motor fuel, and the tax revenues that are generated through these purchases. Thus, sources of funding for transportation projects, like road and bridge repair, are in jeopardy as the motor fuel tax made up just over half of the total state transportation revenue.


The $4.3 billion number assumes that Illinois will succeed in its current goal of putting one million electric vehicles on the road, an effort that would require an addition of 119 thousand electric vehicles per year. This amount also considers the recent increase of the annual electric vehicle registration fee.

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