How to Make the Most of the EV Charger Tax Credit

Dec 1, 2022 | Blog | 0 comments

As part of the Inflation Reduction Act, Congress has extended the EV charging tax credit—a federal tax break for electric vehicle chargers and their installation.

The section 30C tax credit, also known as the Alternative Fuel Vehicle Refueling Property Credit, gives taxpayers a $1000 credit. It was previously set to expire at the end of 2022, but has been extended to expire on December 31, 2032. This means there’s still time to get an EV charger and get the credit for it. However, all EV owners should be aware of the changes made to the $1000 credit. Here’s what you need to know to make the most of it.

EV Charging Pays: How to Qualify for the Tax Break

The federal EV charger tax credit applies to any taxpayers who install an EV charger in their home after December 31, 2021. This covers 30% of hardware and installation costs, up to a maximum of $1000.

A residential electric vehicle charger generally costs from $200 to $1000 or more for the equipment, depending on the brand and charger type. Similarly, depending on the charger, voltage and scope of work being completed, an electrician’s cost can range anywhere from $500 to $1000 or more. Updates to the electrical panels to accommodate the EV charger and permits may also be included in the credit.

Make sure you save all receipts related to your EV charger installation and provide these to your CPA or other tax professional. If you want to get an idea of how much you could be credited, review and complete IRS Form 8911.

Big EV Charger Tax Credit Changes

When it was reinstated, the EV charger tax credit was improved upon in a few important ways. The tax credit was amended to also cover bidirectional charging equipment. Bidirectional EV chargers use the electricity in your home to charge your vehicle and can also send energy from your car back to your home or the grid.

Taxpayers can also claim EV chargers designed for two or three-wheeled vehicles, like motorcycles. With these additions, there are now several more ways to save money when installing an EV charger.

State and Federal EV Charger Tax Credits 

Certain state and metro areas also offer tax incentives for installing an EV charger. If your state or city does this, you can tax credit on both sets of taxes for the installation. This is a great way to save even more on installation.

These credits will vary depending on the municipality. Some areas offer different amounts and some offer multiple credits for multiple chargers. Check with your local utility provider or local government to see what options are available in your area.

Local Energy Company EV Charger Rebates and Initiatives 

You may also wish to check with your energy provider to see what, if any, bill credits or savings programs exist for EV owners. For example, Duke Energy currently offers a $10 monthly bill credit if you charge during off-peak hours

Duke Energy is also offering a rebate program for installation of Level 2 and DC Fast Chargers for use in public areas. Currently available rebates range from $300 up to $36,000 per charger. Visit the Duke Energy website for more information and to apply for this program.

Request a Home EV Charger Installation With Gulfstar Electric 

Installing an EV charger in your home will not just save on your taxes, but provide many long-term benefits, too. Gulfstar Electric specializes in turn-key electric vehicle charging solutions for your home, office or condominium. These are specially tailored to your make and model of EV and to work within your existing electrical system wherever possible. Our friendly and professional staff will help with your installation every step of the way. We’re Tampa Bay’s EV Charger pros, proudly serving the area since 2013!