Nebraska Doubles EV Registration Fees, Adds New Hybrid Charges for 2025

Nebraska is set to dramatically increase its electric vehicle fees, doubling the annual registration cost for EVs while introducing new charges for plug-in hybrids starting January 1, 2025. The Nebraska Department of Motor Vehicles announced that EV owners will soon pay $150 annually, up from $75, while plug-in hybrid drivers will face a new $75 yearly fee, according to the Nebraska Public Media News.

The fee restructuring represents a growing trend among states grappling with declining gas tax revenues as EV adoption increases. While Nebraska’s new $150 fee falls roughly in line with neighboring states, it arrives at a crucial moment when manufacturers like Ford and Tesla are expanding their presence in the Midwest with more affordable electric models.

The state’s decision to implement a $75 fee for plug-in hybrid vehicles signals a more comprehensive approach to capturing revenue from electrified vehicles. This move affects an increasingly popular segment that includes vehicles like the Toyota RAV4 Prime and Ford Escape PHEV, which can operate on both electricity and gasoline.

Nebraska DMV Director Rhonda Lahm frames the increase as an equity measure, emphasizing the need for all road users to contribute to infrastructure maintenance. However, the timing raises questions about potential impacts on EV adoption in a state where electric vehicle penetration remains below the national average.

For perspective, the new $150 fee approximates the annual gas tax paid by drivers of conventional vehicles averaging 12,000 miles per year at 25 mpg. This calculation suggests an attempt at parity, though it doesn’t account for EV owners’ contributions through electricity taxes and other fees.

The changes extend beyond passenger vehicles, with electric and plug-in hybrid motorcycles now subject to a $75 annual fee – a first for the state’s two-wheeled electric vehicles. This comprehensive approach indicates Nebraska’s effort to establish a sustainable funding model for transportation infrastructure as vehicle electrification accelerates.

These fees come as neighboring states like Iowa and Kansas also adjust their EV fee structures, reflecting a regional push to address infrastructure funding gaps. The broader implications for Midwest EV adoption remain to be seen, particularly as automakers increase their electric vehicle offerings in price-sensitive markets.

Photo courtesy of Tesla.