Tax Credits for EV Charging Station Installation
Saying goodbye to spending time and money at the gas station certainly ranks high on the list of perks that come from making the switch to an all-electric vehicle. There’s also the smooth, seamless power delivery to match the remarkable efficiency that you’ll enjoy with your EV. However, there’s still yet another advantage that can make your EV ownership experience that much more rewarding.
Installing a dedicated charging station at your home is the ultimate way to ensure that you start your day each morning with a full battery charge. Did you know that there’s a specific tax credit that certain EV owners may qualify for that provides extra savings once installed? Below, you’ll learn all about the Section 30C tax credit, also known as the Alternative Fuel Vehicle Refueling Property Credit, and all of the benefits that come from this program.
EV Charging Station Tax Credit Explained
Having a dedicated home EV charging station allows you to enjoy unparalleled convenience and flexibility, making it easier than ever to transition to an all-electric driving lifestyle. With the growing popularity of EVs, installation costs continue to drop from where they were just a few years ago. However, the costs to install a dedicated home charging station are still high enough to give many potential buyers pause when considering the switch to an EV.
In an effort to reduce the financial burden of installing a home charging station and motivate more drivers to make the switch to an EV, the Alternative Fuel Vehicle Refueling Property Credit has been extended for ten additional years. Referring specifically to the section 30C tax credit, taxpayers who qualify may claim up to $1,000 for EV charging hardware and installation*. In addition to extending the expiration date of the credit to December 31, 2032, there are some other key changes that we’ll cover below.
Bidirectional EV Chargers Now Qualify
Unlike the prior credit, the reinstated credit now includes bidirectional charging equipment. If you’re not familiar with the term, bidirectional chargers have the ability to charge your vehicle using the electricity from your house while also sending energy from the car back into your home’s electrical grid.
Chargers for Two-Wheeled and Three-Wheeled Vehicles Now Qualify
Certain all-electric power sports vehicles like motorcycles and side-by-sides are now eligible for the EV charging station credit in addition to traditional four-wheeled vehicles.
State and Federal Rebates Can Now Be Combined
Although specifics vary by state, you may be able to multiply your savings further by combining local and state reimbursements with the federal tax credit. Be sure to check with your local government and utility providers to discover if there are any additional programs that you may qualify for.
*Individual tax situations may vary. The information presented was accurate at time of publishing. Federal rules and tax guidelines are subject to change. Consult your tax advisor for complete details on rules applicable to your individual situation.