The recently passed Inflation Reduction Act (IRA) renews the incentive for EV (electrical vehicle) charger installations. The law was signed by President Biden on August 16, 2022, and it is an extension and improvement of the 30C U.S. federal tax credit already available to businesses and homes.
EV Charger Tax Credit
Business and home owners that installed electric car chargers previously could file for the 30C tax credit until the end of 2021 when it expired. Since the start of 2022, no one was sure whether Congress would renew the EV charger tax credit for projects completed during 2022. The passing of the IRA reinstated the incentive through 2032 with several rules revised.
Home EV Chargers
Homeowners who have installed an EV charger qualify for the tax credit. It will cover the total cost of both the equipment and installation. Under the IRA, the credit remains the same, which is 30% of a project’s expenses up to a $1,000 credit. In addition, the credit is now applicable for each charger installed. For example, the installation of two chargers can get up to $2,000 in tax credits.
The tax credit also applies to bidirectional charging equipment used for powering home electrical needs and feeding power to the electricity grid. Recently made available, they are more expensive than regular EV chargers. The credit also now applies to home EV chargers used for two and three-wheeled vehicles.
Business EV Chargers
A business that installs an EV charger can qualify for the tax credit amounting to 30% of the cost of equipment and installation. Moreover, the IRA has raised the maximum potential tax credit from $30,000 to $100,000. Keep in mind that only installations completed after 2022 are eligible for the higher amount.
Beginning January 1, 2023, the tax credit will require paying prevailing labor wages and complying with certain apprenticeship rules. The availability of tax credits will also be limited to projects installed along approved census tracts. Typically, these are located in non-urban or low-income areas. Bi-directional charging equipment will also be eligible.
Electrical Services You Can Trust
Founded in 1991 and serving Maryland, Virginia, and D.C., where we are licensed and insured, Meyer Electrical Services provides home and commercial electrical services you can trust, including:
- Standby Generator Installation
- Panel Upgrades (Heavy-Ups)
- Electrical Vehicle Charging Stations
- Structured Cabling
- Circuit Breaker Replacement
Based in Bethesda, our team proudly serves all of Montgomery County. Receive a free consultation for custom electrical work today by calling (301) 941-1400.