The federal tax credit for electric vehicle (EV) charging stations expired at the end of 2021. That all changed with the passing of the Inflation Reduction Act of 2022 (Public Law 117-169). The credit has now been expanded and extended for another 10 years, until 2033.
What does that mean for your business? If you install EV charging stations or EV charging equipment before 2033, your business is eligible for tax credits of up to 30% of the total cost of equipment and installation, subject to a limit of $100,000. That's a big upgrade from the previous tax credit, which topped out at $30,000.
Eligible charging equipment must be installed in areas that meet specific demographic requirements. Projects must also adhere to certain labor standards. For many businesses, however, the tax credit provides an opportunity to significantly reduce the cost of installing EV charging stations.
How EV charging can benefit your business
Why should you install EV charging stations? EV charging can improve your operations and boost your bottom line in a number of ways.
Attract new customers. By simply installing a charging station, you'll attract new customers in the form of EV drivers looking for a place to charge their vehicles. Your new customers will become repeat customers since they'll know where they can get a charge.
Boost revenue. EV drivers may also spend more time in your location as they wait for the vehicles to charge, giving them more time to browse and spend more money. You can generate additional revenue by establishing a service fee for each vehicle charging session.
Increased employee satisfaction. EV charging can help attract and retain employees by giving them a convenient place to charge their EVs. Also, surveys have shown that employees want to work for companies that care about sustainability.
Enhance your company brand. Charging stations help show that your company cares about the environment and is on the leading edge of new technology. It can also be a competitive advantage, helping your business stand out in a crowded marketplace.
Electrifying your fleet
If you have a fleet of vehicles, now is also a great time to switch to electric. Until 2033, a tax credit will be available to businesses for the purchase of new EVs. The tax credit will cover up to 30% of the purchase price of an electric vehicle, up to a limit of $7,500 for vehicles up to 14,000 pounds and $40,000 for vehicles over 14,000 pounds. Eligible vehicles must meet specific battery capacity standards.
Today's EVs can travel up to 200 miles or more on a single charge. They also offer benefits in lower operating costs, quieter operation, less maintenance and no tailpipe emissions.
With newly available tax incentives and increasingly advanced EV technology, there's never been a better time to electrify your transportation.
