US expands IRA Charging Tax Credit for more individuals and businesses

The U.S. Department of the Treasury and Internal Revenue Service (IRS) on Friday shared expansion guidance for the Inflation Reduction Act (IRA) to increase charging infrastructure tax credit and ease up the Electric Vehicle (EV) charger access.

The department has also released a location-based mapping tool that will enable households, businesses, and organizations to check their eligibility for the federal tax credit.

IRS says the new expansion will cover more of the communities and areas across the U.S. under Alternative Fuel Vehicle Refueling Property Credit (30C) to increase EV purchases with price reduction. Still, it’s unclear which states are covered under this new expansion.

The charging tax infrastructure incentive provides a credit for up to 30% of the 30C property placed in service by the taxpayer.

This credit could be claimed by individuals for home EV charging ports and other refueling equipment by businesses. The credit could range from $1,000 for personal property to $100,000 for business property.

Under the new requirements, the qualified property must be installed in a low-income community or any other hard-to-find EV charging area.

“The law has unleashed an investment and manufacturing boom in the United States unlike any we’ve seen in decades, with companies from around the world choosing to do business in America and electric vehicle sales surpassing 1 million for the first time in 2023,” said Wally Adeyemo, Deputy Secretary of the Treasury.

US Administration also announced $325 million in funding to build and repair EV chargers to make them functional (Read more here).

Biden administration aimed to install 500,000 charging stations by 2030. However, new funding could bring this aim down to 2026, as expected by the White House on Friday.

(source – DepartmentOfTreasury)