EV Charger Tax Credit Update
The EV charger tax credit has been restored thanks to the Inflation Reduction Act (IRA), a comprehensive climate, energy, tax, and healthcare legislation passed during the Biden administration. The IRA extended the Alternative Fuel Refueling Property tax credit through December 31, 2032, providing a 30% tax credit for home EV charging station hardware and installation costs, up to $1,000.
Key Changes to the EV Charger Tax Credit
- For home installations, the tax credit covers 30% of hardware and installation costs, up to $1,000.
- Businesses can claim up to 30% of the total cost of equipment and installation, with a credit of up to $100,000 per EV charger for projects completed after 2022.
- The credit applies to various EV charger equipment, including bidirectional chargers.
Claiming the EV Charger Tax Credit
To claim the federal tax credit for your home EV charger or other EV charging equipment, you must file Form 8911 with the IRS when submitting your federal income tax return. You’ll need receipts showing the purchase price and installation fees for the EV charger, as well as information about your tax liability for the year you’re claiming the credit.
Uncertainty Surrounding the EV Charger Tax Credit
The future of the EV charger tax credit is uncertain due to the GOP’s proposed tax plan, which includes eliminating federal clean energy tax incentives in the IRA. The latest draft bill from the House GOP proposes ending the federal clean energy tax incentives, including the EV charger tax credit, residential home energy credits, and the EV tax credit for new, used, and leased electric vehicles.
Additional Incentives for EV Charging
In addition to the federal tax credit, numerous state and regional incentives are available for EV charger installations. The U.S. Department of Energy maintains a searchable database to help you find state tax credits and rebates that can offset the cost of your EV charger and EV charging equipment.
Home Solar and EV Charger Incentives
The IRA also provides incentives for home solar panel installations through the Residential Clean Energy tax credit, offering a nonrefundable tax credit of up to 30% of the total cost. This credit can be beneficial for those interested in using solar panels to charge their electric vehicles, potentially allowing them to claim both the home solar panel tax credit and the EV charger tax credit.
Acting on the EV Charger Tax Credit
Given the uncertainty surrounding the future of the EV charger tax credit, it’s advisable to act sooner rather than later if you’re in the market for an EV charger and wish to take advantage of the tax credit.
