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The EV charger tax credit allows you to receive 30% of the cost of your electric vehicle (EV) charger equipment and installation costs as a nonrefundable amount. It’ll be deducted from any federal taxes you may owe that year.
It’s available to most Americans who live in the eligible census area, based on low-income or rural areas. An individual can receive up to $1000 off their federal taxes. Even if they’re installing multiple chargers, businesses located in the eligible regions also qualify and could receive up to a maximum of $100,000 in federal tax incentives.
Let’s investigate this further to discover if you’re eligible and how to receive it.
Who Can Qualify for the EV Tax Credit?
The original electric vehicle incentives ended a couple of years ago but were renewed under the Inflation Reduction Act’s Alternative Fuel Refueling Property Tax Credit that extends the incentive. Eligibility, however, depends on a few factors.
If you install an electric vehicle charging station at your main home of residence during the right timeframe and you live in an eligible census tract, you will be eligible. Large areas of the USA are eligible, focusing on low-income, non-urban areas. Check out the eligible census tract mapping tool to help you determine your potential eligibility and how long you have to install your charger. Some areas end as early as 2024, while others extend to 2029 or 2030.
One new addition to this incentive is that it allows for chargers for 2- and 3-wheeled vehicles intended for use on the road. It also allows bidirectional charging equipment, which can charge your electric vehicle and allow the vehicle to be used as a backup power source for your home and appliances.
If you own a business and want to install EV charging stations, you may also be eligible, provided you meet prevailing wage and apprenticeship requirements. The new credit allows you to install one or more chargers at your location, provided you’re in the eligible census tract.
What Is the Value of the EV Charger Tax Credit?
Since it’s a credit and not a rebate, you don’t get it automatically when you purchase the charging equipment and won’t get cash back later. However, you benefit from the amount being applied against your federal tax liability the year you buy the charger.
The value for those in the eligible census area is 30% of the cost of both the hardware and the cost of installation. There are maximum limits to the amount you can receive. For homeowners, you’re eligible for up to $1000 off of your federal liability. Businesses that meet the wage requirements are also eligible for up to $100,000 in credits.
How to Claim the EV Charger Tax Credit
In order to claim 30% of your electric vehicle charging station equipment and installation fees, you must file income and state information when you file your taxes. Additionally, when you submit your taxes, you must also submit a Form 8911 with the IRS. Be sure to provide receipts that show the purchase and installation fees to validate your claim.
Remember, this is not a refundable credit, so you won’t get cashback. For this reason, you also need to know your liability on your federal taxes for the year you claim the amount since it’ll be subtracted directly from any federal taxes you might owe that year.
EV Charger State Rebates and Incentives
Depending on where you live, you may also be eligible for significant state rebates and incentives when you install an EV charging station at your home.
The US Department of Energy’s searchable database will help you find state incentives and rebates in your area. Then, you’ll need to contact your state programs to determine the eligibility criteria and how much you can expect to receive, as they’ll vary considerably from state to state.
For example, certain areas in California offer up to $1000 in rebates for both residential and commercial EV charging stations. New York has even better incentives, up to $5000 in rebates.
Depending on the eligibility criteria, you may be able to get both a state rebate and a nonrefundable federal credit.
Are There Incentives for the Installation of Home Solar Panels?
The Inflation Reduction Act also includes fantastic incentives for home solar panels through the Residential Clean Energy Tax Credit, often called the solar tax credit. It’s one of several solar incentives and credits now available to homeowners throughout the USA.
Like the EV charging station credit, this one also offers a nonrefundable credit of up to 30% of the total cost of purchasing solar panels, batteries, and hardware, as well as installation labor, inspection fees, and permits. This program is available through December of 2032.
This means that you can get an EcoFlow DELTA Pro Ultra whole home generator or backup power station for on-grid or off-grid use. This expandable model allows you to have up to 15 x 6kW EcoFlow DELTA Pro Ultra batteries and up to 42 EcoFlow Rigid Solar Panels. That’s enough to run your entire home and supply energy for your electric vehicle charger. If you have net metering in your area, you can even tie this to the grid and get paid for the excess energy you sell back to the grid.
The added bonus is that you might be eligible for both home solar tax breaks and the credit for your EV charging station. Some of you may even be eligible for the $7500 EV Tax Deduction. That means you can get rebates and credits for your entire system if you want to go solar for your home with EcoFlow 400W Portable Solar Panels and charge your car with solar.
You can even buy a portable power station with a grounding adapter and use it as a mobile backup EV charger, similar to carrying a jerry gas can for a gas vehicle.
Frequently Asked Questions
The Inflation Reduction Act for EV charging stations is a non-refundable amount of 30% of the cost of the equipment and installation that you can use when you file your federal taxes. They’ll deduct the amount from any federal taxes you might owe.
When you file your income taxes, file a Form 8911 along with it. If you’re in the eligible census area, you’ll qualify for up to 30% of the cost of the electric vehicle charging equipment and installation. That amount will be deducted from your tax liability that year.
The $7500 EV tax credit is a federal nonrefundable credit available to people who buy new qualified electric vehicles between 2023 and 2032, provided they’re for personal use and their family meets specific income requirements. Because it’s a credit, the amount will be deducted from any federal taxes you may owe.
Final Thoughts
With all the fantastic tax incentives and rebates available for EV chargers, EVs, and home solar, adopting renewable energy has never been more appealing.
We’ve seen many advancements in solar power, like EcoFlow’s DELTA Pro Ultra with expandable battery storage and high-capacity solar charging options. Even large homes with an electric vehicle charger can now go off-grid and achieve complete energy independence. And now, you can take advantage of significant financial incentives when you do.
