Renewal of EV Charger Federal Tax Credit
Passed over the 2022 summer, the Inflation Reduction Act (IRA) includes renewing the EV (electric vehicle) charger installation incentive. Signed by President Biden on August 16, 2022, the law extends and improves the 30C U.S. federal tax credit already available to homes and businesses.
EV Charger Federal Tax Credit
Home and business owners who installed electric car chargers could claim the 30C tax credit until December 31, 2021, when it expires. Since the beginning of 2022, it has been uncertain whether Congress would renew the EV charger tax credit for installations completed during 2022. The IRA passage renewed the incentive, and the credit has now been extended through 2032 with several rule changes.
EV Chargers for Homes
Homeowners qualify for the tax credit if they have installed an EV charger. The incentive covers the total costs paid for equipment and installation. The credit has not changed – 30% of a project’s expenses up to a maximum of $1,000. What is new is that the credit is now applicable for every charger installed. For example, installing two chargers can earn up to $2,000 in tax credits.
Another new wrinkle is that the incentive can be applied to bidirectional charger equipment for powering home electrical requirements and sending excess power to the electricity grid. Newly available, this equipment is more costly than standard EV chargers. Moreover, the credit is now applicable to home EV chargers that power two and three-wheeled vehicles.
EV Chargers for Businesses
Installing an EV charger can qualify a business for the tax credit, which can amount to up to 30% of equipment and installation costs. Remarkably, the IRA increases the maximum potential tax credit more than threefold – from $30,000 to $100,000. However, only installations completed after 2022 will be eligible for the higher amount.
Starting January 1, 2023, the tax credit will require businesses to pay prevailing labor wages and comply with specific apprenticeship rules. Moreover, the tax credit’s availability will be limited to installations along approved census tracts. These tracts are typically located in low-income or non-urban areas. In addition, bi-directional charging equipment will also be eligible.
Electrical Peace of Mind
Providing professional electricians since 1988 in Maryland, Cook Electric is the company you can rely on for all your electrical service needs, including:
- Commercial & Residential Electrical Installations
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For knowledgeable, fair, honest, reliable, and conscientious service, call Cook Electric today at (410) 266-9040. We will be very glad to help you.