With the Inflation Reduction Act being signed into legislation comes an extension for a tax credit dedicated to electric vehicles. The Section 30C tax credit, which is also called the Alternative Fuel Vehicle Refueling Property Credit, initially expired at the end of 2021, and was used to help influence the EV market in the United States as a part of the Biden Administrations climate change initiatives. This will provide a tax credit to those that are installing electric charging stations to their properties.
It will help cover the cost of up to 30% of the cost of the alternative refueling stations with a $100,000 cap per station. To qualify for these tax credits the charging stations must meet certain requirements. The charging station must be located in certain areas, specifically low-income areas. Neighborhoods are considered low-income if at least 80% of the community members do not exceed the median household income for its state’s standards.
The price of EV charging stations can be daunting for some businesses or facilities. Tax incentives like these can help stimulate the EV charging network across the country. There are many ways people can get financial assistance with installing EV charging stations. There are tax incentives and grants offered by numerous levels of government. Lots of states are offering incentives and grants to businesses and cities trying to lower their neighborhoods carbon footprint. As well as some private grants and funding that can be applied for.