If you install an EV charger for your electric car in your home, you may want to take advantage of the federal tax credit. The Federal 30C Tax Credit was renewed as part of the Inflation Reduction Act (IRA) of 2022. It provides a valuable incentive for installing EV charging-related hardware.
The federal tax credit covers 30% of an EV charging station, necessary equipment and installation costs. For residential installations, the IRS caps the tax credit at $1,000. Unlike some other tax credits, this program covers both EV charger hardware AND installation costs. Since installation costs are significant for EV chargers, this rule allows you to get the most tax credit for your new EV charger. It does not include other costs such as permitting and inspection fees.
The federal tax credit does not specify a specific type of equipment. Here are some chargers that would qualify:
40-Amp, Level 2 charger. Flexible amperage settings from 16 to 40 amps. Wi-Fi and Bluetooth enabled.Where to buy
32-Amp, Level 2 charger. Wi-Fi enabled.Where to buy
32-Amp Level 2 EV charger.Where to buy
You claim the credit on your Federal tax return by completing a form 8911 (see the form here). You can also review the guidance from the IRS at this site (IRS Guidance 8911) or consult your tax advisor. Unfortunately, these documents have not yet been updated to reflect the new legislation, but they should be in the near future. Make sure to keep receipts for the equipment and installation of your EV charger.
To receive the federal tax credit for installing an EV charger in your home, you must purchase and install the charger by December 31, 2032.
The tax credit is retroactive, so you can apply for this credit for EV chargers installed as far back as 2018. For older installations, you may have to file an amended return to get your tax credit.
A tax credit is a dollar-for-dollar reduction of your tax liability. That means if you received a tax credit of $1,000, it would decrease the tax you owe by $1,000. A tax deduction is subject to your tax rate. So if you received a tax deduction of $1,000, and you fall into the 22% tax bracket, the deduction would save you $220. The bottom line is that a tax credit is usually much more valuable than a tax deduction.
You can read more about the Alternative Fuel Infrastructure Tax credit on DOE's website. It has not yet been updated to reflect the passing of the Inflation Reduction Act.Alternative Fuel Infrastructure Tax Credit
Disclaimer: Please consult with your tax professional to see how these credits apply to you. Rebates4EVChargers provides this information as a resource, and it does not constitute tax advice. As an Amazon Associate, Rebates4EVChargers may earn commissions from qualifying purchases.
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