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Tax Credit for Installing Electric Vehicle Charging Station

Tax Credit for Installing Electric Vehicle Charging Station

By Vanessa Peng

Can you receive a tax credit for installing an electric vehicle charging station? Find out if your battery electric vehicle qualifies, what steps you need to take, and other things to consider before installing an EV charging station.

Putting electric vehicle (EV) charging stations at your facility is a good investment opportunity, especially given the tax credits and incentives available to you. In this article, we will go over ways to save on installing an electric vehicle charger, what EV rebate program you might be eligible for, and how these initiatives are helping drive EV adoption.

electric vehicle that is plugged in and charging

Federal EV Charging Tax Credit

The federal government offers a tax credit for EV charging stations known as the Alternative Fuel Infrastructure Tax Credit for equipment and installation costs. You can receive a tax credit of up to 30% of your commercial electric vehicle supply equipment, infrastructure, and installation cost, or up to $30,000. Residential installation can receive a credit of up to $1,000.

The federal tax credit was extended through December 31, 2021. The tax credit is retroactive and you can apply for installations made from as far back as 2017. So if you recently installed a home EV charging station or completed a large-scale EV infrastructure project, you might still be eligible for this.

While the federal government can help you lower your tax liability on an EV charger installation, you can cut how much you spend on the chargers and installation expenses through an EV rebate program. EVSE rebates can be offered by utility companies and state agencies. Depending on where your facility is located, you can offset up to 100% of your EV charging equipment and electric vehicle installation costs.

Utility Rebates for Commercial EV Charging

Out of all the entities that offer rebates for EV charging, utilities offer the best electric vehicle incentives for businesses and EV owners. Reduce the upfront cost of an EV purchase and capture your incentive before it’s too late. EV charging rebates from utilities all have deadlines or have a specific amount of allotted funds available. Once the deadline is reached or funds run out, you can no longer apply for the rebate programs.

Utilities usually offer anywhere from a thousand dollars to tens of thousands of dollars for commercial or home charging station projects. The actual rebate you receive will depend on how robust your utility’s EV charging incentive program is and what type of EV chargers you are installing. Most utilities offer less for a Level 1 or Level 2 charging station and more for a DC fast charger. This is mostly due to the fact that a Level 2 charger is not as demanding on the electrical grid.

The installation process of the electric vehicle infrastructure for DC fast chargers is also more complicated due to their need for a larger amount of power distribution. DC fast charging comes with a lot of benefits, such as the ability to charge an electric car in under 30 minutes, but residential customers and commercial properties do not require this.

Some incentive programs can cover up to 100% of project costs! Southern California Edison’s Charge Ready program is one such program. How much the program will cover depends on what type of commercial facility it is and if it’s located in a disadvantaged area. You can find out more about the SCE EV rebates here.

State Incentives for Commercial EV Charging

Many state organizations offer EV charging incentives as well. Yes, these rebates can be used in addition to utility and federal incentives!

State-specific incentives vary in amount, but many can cover a large portion of your EV charging equipment and installation – some up to 100% of project costs. For example, the New Mexico Environment Department (NMED) offers rebates for eligible mitigation projects for nitrogen oxides (NOx) emissions. NMED may provide funds up to 100% of the cost to purchase, install, and maintain eligible light-duty EV charging equipment.

Some state agencies also offer tax rebates. For example, the New York State Department of Taxation and Finance offers an income tax credit of 50% of the cost of EV charging infrastructure, up to $5,000 through the alternative fuels and electric vehicle recharging property credit. Learn more about state-specific rebates in our ultimate guide to commercial EV charging.

County and regional organizations also offer rebates and incentives for commercial EV charging. For example, the ChargeUP! Sarasota County program in Florida offers rebates for businesses, non-profits, and local governments in the county that buy and install EV charging stations. Businesses are eligible for rebates of up to 25 percent of the cost, up to $2,0000 per public charging station.

How much can you get in business tax credits for EV charging?

As you may have figured out from this article, there are many different ways to save on commercial EV charging stations. Different entities offer incentives, rebates, and tax credits for your EV charging stations and their installation.

It is easy to become confused when you are trying to figure out which rebates and tax credits you are eligible for and how to apply for them. We can help with that! Connect with one of U.S. Energy Recovery’s EV specialists to find out how much you can save: Schedule a Call.

Electric Vehicle owners looking for a charging station rebate or tax credit