Pennsylvania Replaces Alternative Fuels Tax With Flat EV Fee

Electric car owners will pay a flat annual fee that lawmakers say will be ‘tied to economic conditions.’

1 minute read

July 14, 2024, 7:00 AM PDT

By Diana Ionescu @aworkoffiction


Close-up of red car parked and plugged in at EV charging station with row of cars behind it.

banphote / Adobe Stock

The Pennsylvania State House and Senate passed a bill that will eliminate the Alternative Fuels Tax (AFT) on electric vehicles (EVs), replacing it with a flat fee, according to a press release from Pennsylvania Senate Republicans.

According to the release, Senate Bill 656 “reflects bipartisan agreement that ensures greater parity for vehicles traveling Pennsylvania’s roads and bridges. The annual flat fee established by this legislation provides for a three-year phase-in period and will ultimately be tied to economic conditions, ensuring continued fairness.”

The fee will be $200 per fully electric vehicle in 2025 and rise to $250 in 2026. Further increases will be tied to the Consumer Price Index (CPI). “Plug-in hybrid EV owners will pay a flat annual fee equal to 25% of the EV fee. Commercial EVs weighing more than 14,001 pounds will continue to be subject to the AFT.”

Thursday, July 11, 2024 in Pennsylvania Senate Republicans

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Close-up of white panel at top of school bus with "100% electric" black text.

Driving Equity and Clean Air: California Invests in Greener School Transportation

California has awarded $500 million to fund 1,000 zero-emission school buses and chargers for educational agencies as part of its effort to reduce pollution, improve student health, and accelerate the transition to clean transportation.

7 hours ago - California Air Resources Board

Aerial view of Freeway Park cap park over I-5 interstate freeway in Seattle, Washington at night.

Congress Moves to End Reconnecting Communities and Related Grants

The House Transportation and Infrastructure Committee moved to rescind funding for the Neighborhood Equity and Access program, which funds highway removals, freeway caps, transit projects, pedestrian infrastructure, and more.

April 30 - Streetsblog USA

"No Thru Traffic - Open Streets Restaurants" sign in New York City during Covid-19 pandemic.

From Throughway to Public Space: Taking Back the American Street

How the Covid-19 pandemic taught us new ways to reclaim city streets from cars.

April 30 - Next City