US Treasury Reveals EV Charger Tax Credit Details Find Out If Your Property Qualifies Now

The US Treasury has clarified EV charger tax credit rules, offering up to 30% back for eligible properties. Use a new mapping tool to discover if your home or business qualifies for this clean energy incentive.

Inflation Reduction Act Introduces Key Tax Credit for EV Chargers

In August 2022, the Inflation Reduction Act was signed into law, and as a result, eligible electric vehicle charging "property" might receive a tax credit of up to 30% of the cost.

According to the US Department of the Treasury and the Internal Revenue Service, all electric vehicle charging ports and their "functionally interdependent components" are eligible for the Alternative Fuel Vehicle Refueling Property Credit (section 30C) tax credit.

“This one simple clarification should positively impact infrastructure deployment as industry players can now more comfortably move forward with projects leveraging this tax credit,” observed Suncheth Bhat, chief commercial officer of EV Realty, in an interview with Electrek.

Enhanced EV Charger Tax Credits for Businesses

The electric vehicle charger tax credit, which can be obtained through IRS Form 8911, has a cap of $1,000 for residential EV chargers and $100,000 (an increase from $30,000) for commercial buildings. January 1, 2023, was the date of its implementation.

Exempt organizations and government agencies may also use elective pay to claim the credit.

Eligibility Based on Census Tracts and Workforce Requirements

Businesses and people must be situated in "eligible census tracts" to be eligible for the 30C EV charging tax credit. An eligible census tract is defined by the IRS as:

“… any population census tract that is a low-income community or that is not an urban area. Approximately two-thirds of Americans live in eligible census tracts.”

Business and tax-exempt governmental entities claiming the Alternative Fuel Vehicle Refueling Property Credit can receive an enhanced credit if they are paying workers prevailing wages and using registered apprentices to install the equipment.

Mapping Tool Offers Eligibility Insights

Businesses and individuals can use a mapping tool that was issued by the US Department of Energy and Argonne National Laboratory to determine if they are qualified for the 30C EV charging tax credit.

(As this article and the map both contain disclaimers stating that they are not official IRS guidelines, please take note of them. Hence, before you submit your taxes, be sure you're eligible by consulting a tax expert.)

Speaking on behalf of the Zero Emission Transportation Association (ZETA), Albert Gore III stated:

“Developing our nation’s charging network is crucial to transportation electrification. As one of the principal incentives for charging infrastructure, 30C will help fill in charging gaps and attract investment to rural and lower-income communities. It will also help comfort potential EV drivers with the transition as they see more publicly available infrastructure.”