How to Take Advantage of EV Charging Infrastructure Tax Credits
Automakers, drivers, investors, and analysts all agree: Electric vehicles will power this country forward into the future. But it’s not just the private sector that is driving this eco-friendly evolution. Both state and federal governments are encouraging businesses and individuals to start making the switch to EVs, and they are putting up the funds to make it happen — in the form of generous, aggressive EV charging infrastructure tax credits.
These tax credits, along with other financial incentives, are designed to defray costs and make it easier and more cost effective to invest in EV charging stations for your business. With so many options available, EV Connect can be your guide to taking advantage of the EV charging infrastructure tax credits in your state, and making sure you make the smartest choice possible for an investment that will help your business succeed now and in the future.
Get Your Federal Credit
If you’re ready to install or upgrade your EV equipment, the first EV infrastructure tax credit to take advantage of comes straight from the top. The Alternative Fuel Vehicle Refueling Property Tax Credit (or 2020 30C Tax Credit) provides tax relief for businesses that install “refueling properties,” such as EV charging stations, and applies retroactively to any costs associated with alternative fuel infrastructure from 2018 onward. Under the Biden administration, there are high hopes that these EV charging tax credits will continue, and even expand.
This federal EV infrastructure tax credit will offset up to 30% of the total costs of purchase and installation of EV equipment, up to a maximum of $30,000 for commercial property and $1,000 for a primary residence. And while it is a non-refundable credit — i.e. it cannot be used to increase your overall tax refund — it is still a substantial option that will help lower the actual dollar amount spent on your initial investment in EV charging stations. And good news — this tax credit has been extended through 2021.
See Your State’s Incentives
While the 2020 30C Federal Tax Credit is accessible in any part of the U.S., there are more EV infrastructure tax credits available at the state level — and some states offer further incentives that can make investing in EV charging a no-brainer for any business. Our expert team at EV Connect can help educate you on the best programs, grants, and rebates in your specific state to ensure you save big as you commit to sustainability.
California, for example, passed legislation that will ban the sale of gas-operated vehicles statewide by the year 2035. With such an aggressive timeline, it is no wonder the state offers some of the most aggressive incentives for businesses. The California Electric Vehicle Infrastructure Project (CALeVIP) is an umbrella organization that comprises dozens of different rebate programs for investments in alternative fuel infrastructure, which can save your business thousands or even millions in costs and taxes. There are even regional programs available for denizens of Southern and Northern CA — and EV Connect is prepared to help your business take advantage of them all.
States like New York offer credits for purchasing infrastructure as well as fleet vehicles for your business, while certain states like Colorado have set aside millions of dollars to establish statewide programs, like Charge Ahead Colorado, that will provide grants of up to $50,000 for qualified projects and cover as much as 80% of the cost of purchasing and installing new EV charging units. Contact EV Connect today to learn how to navigate the range of lucrative options available to you and your business.
Go Local
While government EV infrastructure tax credits can make a huge difference for your company, much of the energy behind the switch to EV charging comes from the energy companies themselves, along with local utilities and organizations across the country. That’s why it is so important to check with your utility providers to see if your business qualifies for any available rebates and incentives.
Dominion Energy Virginia, the largest utility company in the Commonwealth of Virginia, created the DEV Smart Charging Infrastructure Pilot Program to help business customers manage the costs of installing stations and switching to EV fleets — while PepCo in the nearby District of Columbia is providing ready-made infrastructure to help support the deployment of EV charging stations for public use.
Some incentives are even more local — for example, business customers of Salt River Project (SRP) can receive rebates for each networked charging port they install, while Tucson Electric Power provides rebates and technical support for customers installing charging ports on their property. Additionally, Portland General Electric is doing everything from partnering with schools to convert bus fleets to electric to helping businesses evaluate their site for EV charging options to providing grants to community organizations that want to offer EV charging infrastructure.
As a selected vendor of these and many other utilities across the country, EV Connect can provide a customized EV installation plan for your business, regardless of size or location. Our team will help you assess every option available at the federal and state levels, while leveraging our experience and relationships with providers and programs across the country to ensure you save as much money as possible for any level of installation project.
By working in tandem with both governments and private businesses in your area, EV Connect can make your commitment to sustainability even smarter and more profitable in the near term and for years to come. Learn how EV Connect can help you find the right incentive program for your business.