Senate OKs excise tax exemption for electric, hybrid cars
The Puerto Rico Senate passed legislation Thursday that exempts electric-powered vehicles from excise taxes as established by Senate Bill 884, which proposes the “Act for the Promotion of Vehicles Powered Mostly by Electricity.”
The measure amends the Internal Revenue Code to promote more effective conservation of natural resources, as well as the development and use of the cleaner vehicles, by exempting them from paying excise taxes and promoting the elimination of all obstacles for the installation and use of a network of charging stations.
Puerto Rico’s hybrid and electric vehicle market has gotten a slow running start, due in part to the price of the vehicles as well as the lack of infrastructure to charge them.
The measure proposes to exempt plug-in hybrids and electric vehicles from paying the hefty excise taxes at the port that can swell the suggested retail price by as much as 20 percent, automotive executives have said.
The measure “promotes a substantial reduction in the sales price of any vehicle powered mostly by electricity, making them more accessible to consumer budgets,” lawmakers said Thursday.