Washington state’s House Bill 2077 would tax surplus Zero Emission Vehicle (ZEV) credits: 2% on credits sold to other automakers and 10% on credits banked for later use. The levy is written so that, in practice, it falls mainly on Tesla. Tesery first covered the bill on April 25, 2025, the same week the House advanced it.
Key facts
- Bill: HB 2077 (2025–26), sometimes called a “Tesla tax.” Companion language appeared as SB 5811.
- Rates: 2% on ZEV credit sales; 10% on banked credits, based on market value.
- Who is hit: Manufacturers above a credit threshold. Coverage at the time said Tesla was the only company clearly above it.
- Money: Fiscal staff projected about $78 million in the 2025–27 biennium and about $100 million a year later. About 70% would go to the general fund; the rest to EV infrastructure.
- Policy backdrop: Washington aims for only zero-emission new vehicle sales by 2035. ZEV credits are how that program balances EV specialists and other brands.
What HB 2077 actually taxes
ZEV credits are not a sales tax on Tesla cars. Under Washington’s clean-vehicle rules, automakers that sell extra EVs earn credits they can sell to brands that fall short. Tesla sells almost only EVs, so it banks and sells a large surplus. HB 2077 would take a cut of that surplus — when credits are sold, and when they sit unused.
GeekWire reported the House passed the bill on April 22, 2025. Sponsors said the tax is about the credit program, not Elon Musk personally. Opponents called it a one-company levy that could raise Tesla prices or weaken the credit market that funds other brands’ compliance.
What it means for Tesla owners
A tax on credits is not an automatic new fee on every Model 3 or Model Y. The path to owners is indirect: Tesla could raise Washington prices, slow promotions, or treat the state as a less attractive credit market. None of that was locked in when the House voted. The official status belongs on the legislature’s bill page, which is the live record.
FAQ
Is this a tax on buying a Tesla in Washington?
No. It targets ZEV credit sales and banked credits, not the sticker price line-item on a retail order.
Why Tesla more than other EV brands?
The bill uses a surplus threshold. Tesla’s all-EV mix puts it over that line; mixed manufacturers typically are not.
Did the bill become law?
As of Tesery’s April 25, 2025 piece it had cleared the House and was heading to the Senate. Check the official HB 2077 page for the signed or failed status.
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