Federal Tax Credits for Charging Stations
The number of electric vehicles sold in the United States continues to increase year-over-year. While EVs still represent a relatively small share of the total vehicle sales market, the gradual increase is a positive trend that suggests more Americans are ready to make the switch from traditional cars to electric vehicles.
Part of that shift is due to the availability of local, state, and federal tax credits, rebates and incentives for electric vehicle charging stations – making it easier not only for the consumers who buy the new EV, but for business owners to install and operate electric vehicle charging stations.
Below, we’ll walk through some of the reasons electric vehicle charging stations receive federal tax credits and why federal tax credits are important for expanding overall charging infrastructure.
Federal Incentives for Electric Vehicles
Before we jump into the tax incentives for installing EV charging stations, let’s highlight one of the most important tax incentives currently being offered by the government.
The federal government offers a $2,500 to $7,500 tax rebate on new electric vehicle purchases in the United States, and the exact amount of the rebate depends on various factors, including the type of battery and the size of the vehicle. Once any single manufacturer (i.e., Ford, Toyota, Chevy, etc.) hits 200,000 in new electric vehicle sales, this federal tax incentive will be gradually phased out over the span of about eighteen months.
According to the Department of Energy, as of 2019, Tesla is the only manufacturer that have entered the ‘phase out’ phase; after December 31, 2019, no new Teslas will be eligible for this tax rebate.
However, there is still plenty of opportunity for electric vehicle drivers to take advantage of this particular benefit – especially if you combine this rebate with any additional incentives offered on a state or local level.
Tax Credits for Workplace Charging Stations
The Energy Policy Act that initially authorized alternative fuel refueling tax credits was passed in 2005. Known as the 30C tax credits, these incentives were aimed at both individuals and commercial businesses and allowed for a 30 percent federal tax credit off the cost of electric vehicle charging stations, including installation. For individuals who may be installing an EV charging station in their garage, this tax credit covered the cost up to $1,000. For businesses, this tax credit covered up to $30,000.
As of 2019, the fate of federal tax credits for electric vehicle charging stations is somewhat unclear. The 30C tax credits were extended by Congress in 2018, but these retroactive extensions only covered electric vehicle charging stations purchased and installed through 2017.
If your business purchased and installed EV charging stations in 2017, you may still be eligible for a tax rebate. For all other EV charging station installations, the future of this incentive is unclear.
If the policy were to change and these federal EV charging infrastructure tax credits were to be enacted once again, it could provide some much-needed savings for business owners seeking to install charging stations. These incentives not only benefit EV drivers and business owners, but help to ensure that the broader EV charging station network is adequately addressing the needs of consumers; as more electric vehicles hit U.S. roads in the years ahead, it is important that an established and reliable EV charging station network exists to meet that increase in demand.
Talk To EV Connect
At EV Connect, we want to work with you to find innovative solutions to workplace EV charging. Regardless of the current state of federal tax credits for electric vehicle charging stations, our team can work with you to find cost-saving opportunities that help you earn a higher return on your EV charging station investment.
To talk through some of those options with our EV experts, give us a call at or reach out to us through our contact form today.