By now you’ve probably heard about the $1 trillion infrastructure law known as the “Build Back Better Act,” which was passed at the end of last year (2021), but did you know a major part of the bill was a push for electrification? The Biden Administration set a target of a 50% electric vehicle EV sales share for the United States in 2030. The proposed Build Back Better bill included ways to increase EV adoption and support the development of the nation’s EV charging infrastructure, including an increased EV tax credit. So how much is the infrastructure bill EV credit and what does the bill mean for electric vehicles? Read on to learn more!
Supporters say the infrastructure bill is a step in the right direction for the expansion of clean energy, jobs for American workers, electric vehicle adoption rates, and EV infrastructure in the United States.
The bill includes several measures that will help support the expansion of EV ownership.
What is in the infrastructure bill for electric vehicles?
The infrastructure bill includes a large focus on electric vehicles with $5 billion in funding for states to build electric vehicle charging stations as part of a national network of EV chargers. 10% will be set aside each year to provide grants to states to help fill gaps in the charging network. Another $2.5 billion will be used to fund communities and corridors through a grant program to ensure charger installations meet the White House’s priorities such as rural charging and increasing access to electric vehicle chargers in disadvantaged communities.
The White House endorsed law included an increase to current EV tax credits for union-made EVs and the maximum number of credits – 200,00 units – an auto manufacturer can have. That part of the legislation has stalled in Congress. Much of the criticism is due to the incentive that supports union-made EVs. One of the biggest critics has been Tesla CEO Elon Musk.
Yes, there are EV tax credits, but the current part of the bill on EV credits is stalled in Congress. No worries, though, there are credits available to an EV buyer from a previous law.
Currently, all-electric and plug-in hybrid cards purchased new in or after 2010 may be eligible for a federal income tax credit of up to $7,500. The eventual credit you receive depends on the car manufacturer of your EV and the size of the EV’s battery pack. For example, when it comes to the Chevrolet Bolt EV, only 2017-2020 models are eligible for a tax credit and only those purchased between 1/1/10 to 3/31/19 are eligible for the full $7,500 amount.
The EV tax credit only applies to electric vehicle purchases made by the original registered owner. When it comes to leases, the federal tax credit goes to the car manufacturer the EV driver is leasing the car from.
As mentioned earlier, every automaker has a 200,000 cap on the amount of qualified EV tax credit sales. Toyota recently announced its customers will soon no longer be able to receive EV tax credits on purchases of its EVs. They expect to reach the threshold before the end of June 2022. After that point, the credits will be phased out over the next year until they reach zero. The tax credits will be at full value once the threshold is reached, then a half value for six months, then a quarter value for another six months.
Nissan is about 30,000 EVs from the cap.
While the electric vehicle tax credit can be reason enough for someone to purchase an EV (since the benefits of EVs are huge – no gasoline costs, decreased maintenance costs, lower carbon footprint…to name a few), there are even more ways to save money on the purchase of your electric car!
State governments and utility providers offer incentives for EVs and for EV charging, this includes rebates and tax credits.
EV charging stations are essential to EV drivers and need to be installed in homes and along major roadways at businesses to ensure EV adoption demands are met. You may be surprised to find out how much you can save on EV charging.
EV and EV charging incentives can be used in combination with one other. For example, in some parts of California, you could save money with three different incentive programs, including one EV rebate and two EV charging rebates. Every program is different depending on if you’re buying an EV or installing an electric vehicle charging station as a commercial or residential customer, where you are located, and who your utility provider is, among other factors.
WattLogic has an entire team dedicated to finding your EV charging rebates and applying for them on your behalf. It is all part of our comprehensive turnkey package for residential and commercial installations, which includes product selection, design and build, rebate management, installation by certified and licensed electricians, and a worry-free quoting process. Start today by filling out a simple digital survey for home charging or digital survey for businesses from whatever device you are reading this on and see how much you can save!