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Happy National Drive Electric Week! This week provides an opportunity to celebrate the progress we’ve made in the transition to electrified transportation and think about the challenges that lie ahead. Recently, the Hawaii Auto Dealers Association hosted HEI CEO Scott Seu to present our EV and decarbonization strategy at their annual conference, following a talk by climate change expert, Dr. Chip Fletcher. Examples like this demonstrate how fortunate we are in Hawaii to be able to come to the table from all backgrounds to support this transition. Throughout the week we are participating in community events across Oahu, Maui and Hawaii Island and are excited to be part of this celebration that draws global attention to the environmental, economic, and other benefits of electric vehicles.
It’s fitting that two major announcements supporting the electrification of transportation came out of Washington, D.C. in the weeks leading up to National Drive Electric Week. One focuses on buses and the other on tax benefits for EVs and their infrastructure.
Most recently, we learned that Hawaii will receive more than $55 million in federal funding for new zero-emission public transit buses. The funding, made available under an infrastructure bill signed into law by President Biden last fall, is part of $1.66 billion invested nationwide in bus fleets and facilities. Supporting charging infrastructure for electric bus fleets is a priority for Hawaiian Electric because in order to meet Hawaii’s commitment to achieving net zero carbon emissions by 2045 we must move aggressively to reduce greenhouse gas emissions in ground transportation.
Hawaii also will benefit from the recently passed Inflation Reduction Act, the largest climate action ever taken by the United States. Among other things, the Act extends the tax credit for qualified plug-in EVS, including vans, pickup trucks and SUVs costing $80,000 or less and sedans costing $55,000 or less. And there is a new tax credit for the purchase of used EVs costing $25,000 or less. Other perks include a new 30% investment tax credit for commercial EV fleets and the return of an expired tax credit for businesses to install EV charging equipment, and an increase in the cap on the credit to $100,000 from $30,000 per location.
Together, these incentives will go a long way to reducing our reliance on imported fossil fuel while helping consumers and supporting the local economy.
Aki & the eMob Team
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