Electric Vehicle Chargers: The Federal Tax Credit is Back
The Federal Tax Credit for electric vehicle chargers is back, and it’s even better this time! While the original federal tax credit for EV charging equipment and charging stations expired back in 2021, the Inflation Reduction Act works to revive this initiative. In this article, we’ll cover everything you need to know about the new federal tax credit so you can make the most of it.
The New Inflation Reduction Act
On August 16th, President Biden signed the Inflation Reduction Act into law. This bill includes a number of provisions that are designed to help reduce the cost of living for American families. For example, there are now tax credits for used and new electric vehicles, climate initiatives, and more. While this is good news for many Americans, it’s even better for EV owners. That’s because the Inflation Reduction Act revives the federal tax credit for EV chargers, but with a few changes. Below, we’ll break down what you need to know.
Extension Of The Tax Credit Through December 31st, 2032
The federal tax credit for electric vehicle chargers has been extended through December 31st, 2032. This means that if you install an EV charger in your home before 2032, you’re eligible. This tax credit allows you to claim 30% of the cost of installation and hardware, up to $1000. This credit will also be available for businesses and organizations that install electric vehicle chargers. It includes the same tax credit of 30% of the cost of installation and hardware. However, unlike residential chargers, businesses will need to meet specific energy efficiency requirements in order to qualify.
Increase In EV Charger Tax Credit Limit For Businesses
Originally, the EV charger tax credit for businesses was capped at $30,000. However, for any commercial installation projects that occur after 2022, this will change. Now, businesses will be capped at $100,000 per EV charger. This means businesses will be able to take advantage of a much larger tax credit. This is especially important if you plan to install multiple electric vehicle chargers.
Can Be Used As A Discount When Purchasing An EV
In addition to the federal tax credit, the Inflation Reduction Act also allows for a new state-level tax credit for the purchase of an electric vehicle. This tax credit can be used as a discount when purchasing an EV, making it even more affordable to make the switch to electric. If you don’t want the immediate upfront cost of an EV, there are also a number of lease and finance options available that can make it more affordable.
Wrapping It Up
The Inflation Reduction Act is good news for many Americans, but it’s especially great news for those who are looking to install an electric vehicle charger. With the extension of the tax credit and the increase in the tax credit limit, there has never been a better time to make the switch to electric. So if you’re thinking about installing an EV charger, be sure to take advantage of the federal tax credit before it expires.