How North Carolina is committing to electric vehicles

These are the incentives, goals, policies, and privileges offered for EVs and other alternative-fuel vehicles in North Carolina.

Government goals, policies, and requirements:
- Developed a plan to increase the number of zero-emission vehicles in the state to 80,000 by 2025; and to register 1.25 million zero-emission vehicles and increase their share of new passenger vehicle sales to 50% by 2030
- Requires state fleets to prioritize zero-emission vehicles in new purchases and to use these vehicles for agency travel when possible. Established a goal that 75% of new or replacement state government light-duty cars and trucks be alternative fuel or low-emission vehicles. Also requires state-owned fleets to increase the use of alternative fuels and fuel-efficient vehicles.

Monetary incentives:
- Funding to replace or convert heavy-duty diesel fleet vehicles to alternative fuels
- Grants to install public and private EV charging stations
- Grants for projects that will reduce transportation-related emissions in certain areas
- Retail sales and use tax exemption for retail sale, use, storage, and consumption of alternative fuels

Privileges, protections, and exemptions:
- Exempts EVs, dedicated natural gas vehicles, and fuel cell EVs from HOV lane occupancy restrictions
- Exempts EVs and fuel cell EVs from state emissions inspections

External collaborations:
- Multi-State Zero-Emission Vehicle Task Force

Other:
- Established a fund for state agencies to offset the cost of purchasing alternative fuels, vehicles, and related infrastructure

In the U.S., the transportation sector is the single leading source of pollution, contributing about 28% of greenhouse gas emissions in 2022. Three-quarters of Americans drive a car to work, most of them alone, and trucks transfer over 60% of freight. As a result, passenger vehicles and freight trucks offer a major opportunity to reduce pollution within the transportation sector.

Efforts to curb vehicular emissions vary widely from state to state. California has led the charge to reduce vehicular greenhouse gas emissions, adopting legislation in 2022 that will require all new vehicles sold in the state to be electric or plug-in hybrids by 2035. Medium- and heavy-duty vehicles like box trucks and semitrucks will follow suit in 2045. Since California's precedent-setting decision, 16 other states have adopted similar mandates with varying timelines and EV sales quotas.

Many states have adopted monetary incentives to promote EV adoption as well. Over half of states provide such incentives to install EV chargers and adopt electric or other alternative fuel buses. Meanwhile, 18 states and Washington D.C. provide monetary incentives for individual residents to purchase EVs. These efforts and others are funded in part by Volkswagen settlement funds, through which the company has paid $2 billion into EV charging infrastructure and $2.9 billion into a state mitigation trust fund in damages for cheating federal emissions tests on nearly 600,000 diesel vehicles.

On a national level, the Infrastructure Investment and Jobs Act is set to invest $7.5 billion in a network of EV charging stations, aiming to add 500,000 chargers across the country. The law includes formulaic state-by-state EV infrastructure funding each year between 2022 and 2026, estimated to total $4.2 billion in all.

Additionally, the 2022 Inflation Reduction Act provides Americans with a $7,500 tax credit for buying new EVs and $4,000 for used EVs, plus credits for commercial clean vehicles, EV charging station properties, continued development and manufacturing of clean energy and transportation technologies, and more.

Many of these efforts may face the chopping block if Trump wins this year's presidential election. The Republican nominee has said he will not allow states to ban gas-powered cars or trucks and may end the national EV tax credit. Meanwhile, Democratic nominee and current Vice President Kamala Harris has supported EV expansion efforts from within the current administration, even casting the tie-breaking vote on the pro-EV Inflation Reduction Act.

The outcome of the election is likely to have major implications for EV adoption and automobile regulation. Read the national analysis to get a deeper sense of efforts across the country—and which states may be most affected by federal policy changes.

This story features data reporting and writing by Paxtyn Merten and is part of a series utilizing data automation across 48 states and Washington D.C.