Federal Tax Credit For EV Chargers
The The 30C EV charging tax credit is a key incentive that reduces the cost of installing electric vehicle charging stations. This guide details eligibility, how to claim the credit, and its impact on promoting eco-friendly transportation solutions.
30C EV charging tax credit
In the wake of the Inflation Reduction Act (IRA), the landscape of alternative fuel infrastructure investment has been significantly enhanced. The extension and modification of the Alternative Fuel Vehicle Refueling Property Tax Credit, commonly known as the 30C tax credit, is a game-changer for both businesses and individuals looking to pivot towards a greener future. Whether you're installing electric vehicle (EV) charging stations at your business or your residence, this tax credit is designed to make the transition more affordable and accessible.
Who Qualifies
The 30C tax credit opens up opportunities for both businesses and individuals by covering a portion of the costs associated with installing qualified refueling and recharging property. If you've placed such property into service within the tax year, you might be eligible for significant savings.
Amount of Credit
The credit offering up to $100,000 per item for businesses, which is calculated at 6% of the cost, but can be increased to 30% for those who meet certain wage and apprenticeship criteria. For individuals, the credit can go up to $1,000 per item, representing 30% of the installation cost.
How to Claim
Claiming your 30C tax credit is straightforward. The IRS provides full guidance online here. To claim the 30C tax credit, submit the IRS Form 8911 during the annual tax filing period. Maximize your savings and investment in green infrastructure with ease.
REQUENTLY ASKED QUESTIONS
What does "placed in service" mean in relation to my qualified alternative fuel vehicle refueling property?
Generally, property is placed in service when it is ready and available for a specific use, regardless of whether or not it is actually used at the time. For example, an EV charger installed at an individual taxpayer's principal residence will be placed in service when it is operational.
For businesses and other eligible entities the IRS has provided general guidance for taxpayers to determine when a property is placed in service in Publication 946 (How to Depreciate Property).
When do I need to place my qualified alternative fuel vehicle refueling property in service to be eligible for the 30C credit?
To be eligible for the 30C credit (as amended by the IRA), the property must be placed in service after Dec. 31, 2022, and before Jan. 1, 2033. Property placed in service before Jan. 1, 2023, may be eligible for the 30C credit under the law in effect before the IRA.
If I am an individual and purchased a charger to install at my principal residence, does my principal residence need to be in an eligible census tract for the charger to potentially be eligible for the tax credit?
Yes. The location requirement for the credit applies both to individual consumer property as well as commercial property.
How do I know if my qualified alternative fuel vehicle refueling property is installed in a location that qualifies for the tax credit?
To be eligible for the credit, qualified alternative fuel vehicle refueling property must be placed in service in one of two types of population census tracts (or both, if the population census tract qualifies under both categories). The categories are:
- Low-income community census tracts: Census tracts as described in the "low-income community" definition of the New Markets Tax Credit (NMTC) (Internal Revenue Code section 45D).
- Non-urban census tracts: Census tracts defined as "non-urban" according to Treasury/IRS guidance.
If my qualified alternative fuel vehicle refueling property was placed in service in a non-urban census tract or low-income community census track before the IRS guidance was released, is it eligible for the 30C credit?
Property placed in service after December 31, 2022, is eligible for the 30C credit if it is located in an eligible census tract, even though the initial guidance for location determinations was released in January 2024. The listings of eligible census tracts (2011-2015 NMTC tracts, 2016-2020 NMTC tracts, and 2020 non-urban census tracts) are all applicable for property placed in service in calendar year 2023.
Are the five U.S. territories of American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, and Puerto Rico eligible locations for 30C property?
In general, 30C eligible property must be used in the 50 states or the District of Columbia. However, refueling property may be eligible for 30C if it is owned by a domestic corporation or United States citizen (other than a citizen that is a bona fide resident of a territory) and which is used predominantly in a territory of the United States by such a corporation or such a citizen, or by a corporation created or organized in, or under the law of, a possession of the United States.
Tax Credits vs. Tax Deductions
Tax Credits
Tax Deductions
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Searching for available rebates and incentives in your region, assessing your program eligibility.
Performing site assessment, guiding you through your rebate application.
Helping you choose the right hardware and work with installers to ensure a smooth process.