Your Guide to Electric-Vehicle Charging-Station Tax Credits

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Installing electric-vehicle (EV) charging stations on your property can benefit your business in many ways — from attracting customers to luring top talent. And thanks to a variety of tax credits and incentive programs, the barrier to entry may be lower than you think.


On the federal, state and local levels, there are a plethora of tax credits for installing electric-vehicle charging stations. Chances are, your business can qualify for significant incentives to help you take the leap toward offering EV charging on your property. Read on for everything you need to know about how these tax credits and incentives work, plus what you have to do to get them (and why it’s worth installing more than just one).


How Tax Credits for EV Charging Stations Work

Most consumers are aware of tax credits for individual electric-vehicle purchases, but many business owners may not be aware of similar (and larger) credits for electric-vehicle supply equipment (EVSE). These EVSE credits are designed to support the expansion of charging-station infrastructure and remove a major barrier to EV ownership by making refueling accessible everywhere. They include incentives for installing EV charging stations.

Tax credits for installing EV charging stations are available in a variety of forms, and many of them apply toward the cost of equipment and installation. Given that the latter can be the most significant expense, that means these credits can add up to significant savings. They usually come in the form of a tax rebate to reduce your business’s tax bill, but they may come in other forms (as we’ll discuss later).

Some type of incentive program is available in 44 states and Washington, D.C., on top of the federal program that’s offered everywhere in the US. In most cases, that means all you have to do to qualify is install charging equipment on your business’s property and submit an application for credit.



Where To Find EV Charging-Station Tax Credits

The federal 2020 30C tax credit is the largest incentive available to businesses for installing EV charging stations. It applies to installs dating back to January 1, 2017, and has been extended through December 31, 2021. It covers 30% of the cost for equipment and installation, up to $30,000. If your business has multiple locations, you can apply this credit toward an installation at each one.

On top of that federal tax credit, there are myriad state and local options available through government entities and utility companies. Massachusetts, for instance, offers its MassEVIP Workplace and Fleet Charging program, which covers 60% of the costs of EV charging equipment and installation for up to $50,000 per business address.

On the utility side, Rocky Mountain Power offers incentives to commercial customers in Utah that cover 75% of the costs, ranging from $1,000 per Level 2 charger up to $42,000 per multiport DC fast charger. Georgia Power offers $500 per Level 2 charger.

These are just a few examples. Various tax and grant programs are available in every state except Alaska, Kansas, Kentucky, North Dakota, South Dakota and West Virginia. The National Conference of State Legislatures provides an up-to-date map with detailed information about current programs in every state and US territory.


Tax-Credit FAQs

Curious for more information about these programs? Here are some answers to a few common questions.


How do I apply for a tax credit for installing electric-vehicle charging stations?

For the federal tax credit, you’ll need to submit IRS Form 8911 when you file your business taxes. This form walks you through reporting your expenses for the project and calculating your credit. Similar forms or applications are required for state and local programs. If your utility company offers a rebate program, you will typically need to apply directly to receive credits or rebates against your utility bills.



Do I have to install a minimum number of stations to qualify?

There is usually not a minimum requirement for the number of stations you have to install — most programs offer at least a small credit for each Level 2 station. There may, however, be a minimum business size required to qualify. In Massachusetts, for instance, your business must have at least 15 employees.

Keep in mind that there are good reasons to consider installing more charging stations even if you don’t have to do it to meet a minimum. It’s unclear how long many of these programs will last, so now is the best time to take advantage of them. The more you invest into your EV charging infrastructure now, the more you future-proof your business to meet tomorrow’s demands.


Do tax credits vary depending on the type of business?

Typically, the only requirements for businesses come down to size and location. You’ll need to check and make sure you meet the requirement for a minimum number of employees and that your business qualifies as commercial and not residential. Many areas offer credits for residential customers as well. Review the options and requirements in your area before you begin installing your EV charging equipment.


The Bottom Line

The transition to an all-electric future is fully in motion, and businesses that want to be ready for that future should be on the leading edge of change. Installing electric-vehicle charging stations at your business signals that you’re serious about leading the way. It will certainly pay off in the long run, and it doesn’t need to cause crippling expenses up front. Let EV Connect help you look into the tax credits and incentives available to your business so you can start building your EV charging infrastructure today.



Sources

  1. The Environmental Center - 4 things you need to know about the EV Charging Tax Credit

  2. Enel X - Federal and State Electric Car Tax Credits, Incentives & Rebates

  3. National Conference of State Legislatures - State Policies Promoting Hybrid and Electric Vehicles

  4. U.S. Department of Energy - Alternative Fuel Infrastructure Tax Credit

  5. Mass.gov - Apply for MassEVIP Workplace & Fleet Charging Incentives

  6. Washington State Department of Revenue - Clean alternative fuel commercial vehicles and vehicle infrastructure tax credits expanded

  7. Rocky Mountain Power - Utah incentives for charging equipment

  8. Georgia Power - Electric vehicle charging for your business

  9. IRS - Instructions for Form 8911

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