Installing EV charging stations can be a great sustainability strategy for your business, as well as a valuable amenity to attract employees, customers, or tenants to your parking lots.
Many businesses worry about the up-front costs of installing and managing EV charging stations. However, there are multiple financial incentives available to help you recoup some of the upfront costs for electric vehicle charging station purchase and installation.
While electric vehicle charging station costs can run high, these incentives often make them an accessible investment for many businesses that wouldn’t otherwise be able to afford them. Choose to invest at a low cost now, and make a profit as EV charging continues to grow. Let’s take a look at where you can find these incentives.
Currently, the federal government offers an incentive called the Alternative Fuel Infrastructure Tax Credit. This is a tax credit that allows you to recoup 30% (up to a maximum of $30,000) of the cost for electric vehicle charging station purchase and installation. If you are installing chargers at multiple locations, all locations count toward the credit.
This incentive expires at the end of 2020. It had previously been extended several times.
Utility Company Incentives
Many electric utility companies offer financial incentives to help businesses in their service area cover their costs for electric vehicle charging stations on their property. You will often find these utility-based incentives in states where there are few or no financial incentives offered directly by the state government. That’s because state governments often fund utility-based incentives, as some states prefer to work through the private sector rather than providing incentives directly.
Additionally, some utility companies go above and beyond, offering even more financial incentives on their own initiative. This is particularly common for utility companies in large metropolitan markets of states like California that are trying to encourage more drivers to switch over to electric vehicles.
These programs come and go, as does available funding, so you should check with your power company to see what incentives might currently be available to you. These utility-based incentives are often the most generous of all aid sources out there to help you with the cost for electric vehicle charging station purchase and installation.
State And Local Government Incentives
Many states offer their own financial incentives to help businesses recoup electric vehicle charging station costs. These incentives usually come in the form of rebates. In some states, incentives may even cover up to 100 percent of the cost for electric vehicle charging station purchase and installation. While some state websites can be difficult to navigate, EV Connect can help you find the incentives available from your state government.
Some of the best state incentives can be found in California and New York. The California Electric Vehicle Infrastructure Project offers dozens of different rebate programs. New York’s Charge Ready NY program provides up to $4,000 per Level 2 charging station, and the New York State Tax Credit for Public and Workplace Charging gives up to $5,000 off your taxes for installing a new EV charging station.
Everything we just said about utility-based incentives for electric vehicle charging station costs also applies to local governments, especially the governments of large cities. Most local governments work to offer financial incentives through utility providers, but some cities offer financial aid directly.
Learn More From EV Connect
For more information, download our list of financial incentives to learn about the resources available to you to offset the cost for electric vehicle charging stations.