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Is it that big an incentive though, or just reducing the disincentive? Even if you get a $500 discount on your taxes, I'm guessing the gas guzzler eats up more than $500 worth of gas extra. That's like, 2-3 gallons per week over the course of a year.
Probably not that big of an incentive for the driver of a gas guzzler depending on how much they drive, but the state shouldn't penalize people for driving more fuel efficient ICE vehicles especially one like mine that loves to give lip service about climate change while not really doing anything concrete to reduce it. I could see charging more for EVs as they pay zero gas tax, but ICE should either all be the same or tiered in the opposite direction to further disincentivize people from commuting in a '92 Suburban versus something like a Prius.