EV Charger Tax Credit 2023

Can you receive an EV charger tax credit when you install an electric vehicle charger? This is a question many businesses ask when they are exploring battery electric vehicle fleet vehicles and transitioning their fleets to electric cars or when they’re planning an EV charging station installation to meet customer or employee demands.

Installing electric vehicle (EV) charging stations at your facility is a good investment opportunity, especially given the tax credits and EV incentives available for commercial EV charging stations. In this article, we will go over ways you can save on installing an electric vehicle charger and which EV rebate program you might be eligible for.


Federal EV Charging Tax Credit

The federal government offered an EV charger tax credit known as the Alternative Fuel Infrastructure Tax Credit for equipment and installation costs but it expired at the end of 2021.  The good news is the EV charging equipment tax credit was renewed by the Inflation Reduction Act of 2022 and is available for 2023 with some changes. 

The credit applies to different types of EV installations – from a home EV charging station project to a large-scale EV infrastructure project.

You can receive a federal EV charger tax credit of up to 30% of your commercial electric vehicle supply equipment, infrastructure, and installation costs, or up to $100,000. The credit does not cover permitting or inspection costs. Residential installations can receive a credit of up to $1,000.

For businesses, this means through the end of the year you would take the total cash outlay that you would be spending after any other deductions from other incentives and you would get a tax credit of 30% of whatever that net amount is. For example, let’s say after incentives you paid $50,000 for your commercial EV charging installation. That would mean your tax credit is $15,000. 

The opportunity from the federal government to help you lower your tax liability on an EV charger installation is definitely exciting, but you can save even more on electric vehicle charging stations and installation expenses through a EV charging station rebate program. A rebate program often means cash back, not just reduced tax liability. Utility companies and different types of state agencies offer electric vehicle supply equipment rebates. Depending on where your facility is located, you may be able to offset up to 100% of your EV charging equipment and electric vehicle installation costs.

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Utility Rebates for Commercial EV Charging

Out of all the entities that offer rebates for EV charging, utilities offer the best electric vehicle incentives for businesses and EV owners. EV charging rebates from utilities all have deadlines or have a specific amount of allotted funds available. Once the deadline is reached or funds run out, you can no longer apply for the rebate program. Reduce the upfront cost of an EV charging purchase and capture your incentive before it’s too late.

Utilities usually offer anywhere from a thousand dollars to tens of thousands of dollars for commercial or home charging station projects. The actual rebate you receive will depend on how robust your utility’s EV charging incentive program is and what type of EV chargers you are installing. Most utilities offer less for a Level 2 charging station and more for a DC fast charger. This is mostly due to the fact that a Level 2 charger does not require as much upgrades or power from the electrical grid and is therefore much cheaper than a DC fast charger.

The electric vehicle infrastructure installation process for DC fast chargers is more complicated then Level 2 chargers due to their need for a larger amount of power distribution. DC fast charging comes with a lot of benefits, such as the ability to charge an electric car in under 30 minutes, but residential customers and commercial properties do not usually require this fast of charge.

Some public utility incentive programs can cover up to 100% of project costs! Southern California Edison’s Charge Ready program is one such program. How much the program will cover depends on what type of commercial facility it is and if it’s located in a disadvantaged area. 

Southern California is also home to Anaheim Public Utilities, which offers some of the best EV charging rebates for commercial customers. You could receive up to $5,000 per Level 2 EVSE or up to $10,000 per DC fast charger.

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State Incentives for Commercial EV Charging

Many state organizations offer EV charging incentives as well. Yes, these rebates can be used in addition to utility incentives!

State-specific incentives vary in amount, but many can cover a large portion of your EV charging equipment and installation – some up to 100% of project costs. For example, the New Mexico Environment Department (NMED) offers rebates for eligible mitigation projects for nitrogen oxides (NOx) emissions. NMED may provide funds up to 100% of the cost to purchase, install, and maintain eligible light-duty EV charging equipment.

Some state agencies also offer tax rebates. For example, the New York State Department of Taxation and Finance offers an income tax credit of 50% of the cost of EV charging infrastructure, up to $5,000 through the alternative fuels and electric vehicle recharging property credit. Learn more about state-specific rebates in our ultimate guide to commercial EV charging.

County and regional organizations also offer rebates and incentives for commercial EV charging. For example, the ChargeUP! Sarasota County program in Florida offers rebates for businesses, non-profits, and local governments in the county that buy and install EV charging stations. Businesses are eligible for rebates of up to 25 percent of the cost, up to $2,000 for a public charging station.

How much can you get in business tax credits for EV charging?

As you may have figured out from this article, there are many different ways to save on commercial EV charging stations. Different entities offer incentives, rebates, and tax credits for your EV charging stations and their installation.

Installing electric vehicle charging stations at your facility is great for business and the energy efficiency of your company. Car manufacturers are releasing new electric vehicles every month, including plug in electric vehicle models and all-electric vehicles. Kia is one car manufacturer dedicated to boosting its EV sales numbers. EV owners will need places to charge and your company could be a part of the movement to grow our nation’s EV charging infrastructure.

When it comes to your EV charging station installation as a commercial customer, it is easy to become confused when you are trying to figure out which rebates and tax credits you are eligible for and how to apply for them. WattLogic can help with that! Fill out WattLogic’s quick digital survey and find out which rebates your particular installation would be eligible for and get a quote in no time. No obligations – just a free estimate without having to deal with searching for the right electrical contractor or planning site assessments.

If you’re a residential customer WattLogic help you out as well! Fill out WattLogic’s 7-minute survey for home charging installations and get a quote without the wait or the hassle of scheduling a time for an electrician to come over to your house for a visit!