How the Electric Car Tax Credit Works for Businesses

If you’ve considered adding EV charging stations to your property or upgrading your fleet to electric vehicles, the price tag may have stopped you from finalizing the purchase. But did you know that there are local and federal tax credits, rebates and incentives for installing electric vehicle charging stations? In fact, if you live in the United States, retroactive tax credits of 30% of the cost of purchasing and installing an EV charging station—up to $30,000 for commercial installations—will be available through 2021.

Why Do EV Charger Tax Credits for Businesses Exist?

Everyone wants the newest technology, but the latest and greatest can come with a heavy price tag, whether you wanted to outfit your staff with laptops in the 1990s or are looking to purchase the top-tier iPhone today. When the bottom line is an organization’s goal, spending money on new technology may not seem like a good use of funds.

However, technology like electric vehicles requires widespread adoption for prices to lower to more affordable levels and—at least in the case of EVs—that enough infrastructure can be available. While each state or province has its own EV adaptation strategy, individual buy-in by companies that can provide public charging is necessary to be able to meet the needs of a growing EV population.

To aid in this adoption of EVs, states, provinces and federal entities provide tax credits to businesses for installing electric vehicle charging stations. 

How Much Can I Get in Business Tax Credits for EV Charging?

The amount depends on how much a local and federal government wants to aid in the adoption of the technology, so it differs depending on if you’re in the U.S. or Canada, and then by state or province. However, state or province business EV charger tax credits, rebates and incentives can be stacked on top of federal incentives.

Because tax credits and incentives differ widely depending on where you live and other specifics such as the date you purchased and installed the EV chargers, it’s important to research the latest available credits and incentives in your area

In the United States, a federal EV charging tax credit covers 30% of the cost for the EV charger and installation costs up to $30,000 for commercial installations. Form 8911, the Alternative Fuel Vehicle Refueling Property Credit, will need to be filled out and filed with your federal taxes, but you can claim EV chargers and installations retroactively as well. If you’ve bought and installed EV charging stations since 2017, you’re eligible for this federal tax credit. However, this credit has a deadline of December 31, 2021, and may decrease in 2022, so it’s recommended that companies looking to install EV charging systems do so before that deadline.

What About Local Utilities EV Charger Tax Credit for Businesses?

Unlike federal, state or provincial tax credits, your local utility may provide incentives in the form of rebates or lower electricity bills. If your local utility offers an incentives program, you’ll be asked to connect your iEVSE or iEVSE Plus unit to their grid with allowances for charging during off-peak hours, or increased savings if you choose to charge during off-peak hours. Off-peak hours are typically 10pm to 8am Monday through Friday and weekends.

Want to learn more? Find additional information on EV charger tax credits, rebates and incentives for businesses. Or if you’re ready to find the perfect EVSE charging station for your property, shop our available units

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