South Carolina Proposes Steep EV Tax Hike as Gas Prices Rise

New legislation would triple the state's EV tax and add a new tax on public charging, drawing criticism from industry group.

Apr. 14, 2026 at 4:55pm

Got story updates? Submit your updates here. ›

A geometric abstract illustration using bold primary colors and simple shapes to conceptually represent the economic tensions around rising gas prices and electric vehicle adoption.As gas prices soar, South Carolina's proposed EV tax hikes risk slowing the state's transition to cleaner, more affordable transportation.Columbia Today

South Carolina lawmakers are considering legislation, S. 831 and H. 5071, that would significantly increase costs for electric vehicle (EV) drivers in the state. The proposals would raise the state's biennial EV tax from $120 to $400 and impose a new 4.5-cent-per-kilowatt-hour tax on electricity sold at publicly accessible EV charging stations. The Electrification Coalition, a nonprofit group, has criticized the measures, arguing they unfairly target EV owners and risk slowing EV adoption in a state that is a growing hub for EV and battery manufacturing.

Why it matters

As gas prices continue to rise, electric vehicles offer a way for consumers to save money on fuel and maintenance costs. However, the proposed tax increases in South Carolina could make it more expensive for residents to switch to EVs, undermining the state's efforts to cultivate its EV and battery manufacturing industries and reduce dependence on imported oil.

The details

The two bills, S. 831 and H. 5071, would significantly increase costs for EV drivers in South Carolina. S. 831 would raise the state's biennial EV tax from $120 to $400, while H. 5071 would impose a new 4.5-cent-per-kilowatt-hour tax on electricity sold at publicly accessible EV charging stations.

  • The South Carolina legislature is scheduled to vote on the legislation this week.

The players

Electrification Coalition

A nonpartisan, nonprofit organization that promotes policies and actions to facilitate the widespread adoption of plug-in electric vehicles (EVs).

Ben Prochazka

Executive Director of the Electrification Coalition, who released a statement criticizing the proposed EV tax increases.

S. 831

A bill in the South Carolina legislature that would raise the state's biennial EV tax from $120 to $400.

H. 5071

A bill in the South Carolina legislature that would impose a new 4.5-cent-per-kilowatt-hour tax on electricity sold at publicly accessible EV charging stations.

Scout Motors, Redwood Materials, and Oshkosh Defense

Companies that have created more than 14,000 EV and battery manufacturing jobs in South Carolina.

Got photos? Submit your photos here. ›

What they’re saying

“At a time when gas prices are rising, electric vehicles offer a proven solution. EVs reduce dependence on oil by powering transportation with domestically produced electricity and can save drivers thousands of dollars through lower fuel and maintenance costs. Tripling the EV tax to $400 and adding a new tax on charging are punitive solutions to a larger problem, unfairly targeting South Carolinians who choose to drive electric.”

— Ben Prochazka, Executive Director, Electrification Coalition

What’s next

The South Carolina legislature is scheduled to vote on S. 831 and H. 5071 this week, which could determine the fate of the proposed EV tax increases.

The takeaway

The proposed EV tax hikes in South Carolina come at a time when electric vehicles offer a way for consumers to save money on fuel and maintenance costs, and the state is actively cultivating its EV and battery manufacturing industries. Critics argue the measures unfairly target EV owners and risk slowing adoption of a technology that can reduce dependence on imported oil.