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Are you considering installing an electric vehicle (EV) charging station at your home or business? Great news! You may be eligible for the Alternative Fuel Vehicle Refueling Property Tax Credit, thanks to the Inflation Reduction Act (IRA). This credit can help offset the costs of installing qualified vehicle refueling or electric vehicle recharging property.
Who Qualifies?
The credit is available to both businesses and individuals who place qualified refueling property into service during the tax year. Even tax-exempt and governmental entities can benefit through elective pay.
Individuals: If you install qualified vehicle refueling and recharging property at your home, including EV charging equipment, you may be eligible for a credit of up to $1,000 per item.
Businesses: If your business installs qualified vehicle refueling and recharging property, including EV charging equipment, you may be eligible for a credit of up to $100,000 per item.
Tax-Exempt Entities: Eligible tax-exempt and governmental entities can claim the credit through elective pay, up to $100,000 per item.
Qualified Refueling Property
To qualify for the credit, the refueling property must be used to store or dispense clean-burning fuel or recharge electric motor vehicles. The property must:
Be placed in service during the tax year
Have original use that began with the taxpayer
Be used primarily in the U.S. and U.S. territories
Be installed on property used as a main home (if not for business or investment use)
Be in an eligible census tract (as of January 1, 2023)
Be depreciable property if not for personal use
As of January 1, 2023, the definition of qualified property includes charging stations for 2- and 3-wheeled electric vehicles and bidirectional charging equipment.
Eligible Census Tracts
Refueling property must be placed in service in an eligible low-income community census tract or non-urban census tract. Approximately two-thirds of Americans are in eligible census tracts. To determine if your property is in an eligible census tract, use the Census Bureau mapping tool and check the IRS-provided lists.
Amount of Credit
For property subject to depreciation, the credit equals 6% with a maximum of $100,000 per item. Businesses and tax-exempt entities meeting prevailing wage and apprenticeship requirements are eligible for a 30% credit with the same $100,000 limit.
For consumers installing qualified refueling property at their principal residence between December 31, 2022, and January 1, 2033, the credit equals 30% of the cost, up to $1,000 per item.
How to Claim the Credit
Use Form 8911 to determine and report your credit for alternative fuel vehicle refueling property placed in service during the tax year. Partnerships and S corporations must file Form 8911 to claim the credit. Other taxpayers can report the credit directly on Form 3800, General Business Credit.
Special Rules
The credit for business or investment use of refueling property is treated as a general business credit.
The credit for personal use of refueling property cannot exceed the regular tax liability reduced by certain allowable credits over the tentative minimum tax.
The basis of any refueling property for which a credit is taken must be reduced by the amount of the credit.
The credit is subject to recapture if the property ceases to qualify within three full years from the placed-in-service date.
Take advantage of these IRS rebates and make your EV charging station installation more affordable. For more detailed information, refer to IRS Publications 6027, 6028, and 6029.
ADD MORE TO YOUR SAVINGS WITH OE SOLAR!
From now until February 28th, 2025, we're offering a discount of 10% off (per unit) on your new EV Charging Station Installation! Commercial or Residential! *Certain restrictions apply.
Call us for your customized quote: 505-850-8863 Or contact us here
At OE Solar, we are committed to helping you harness the power of renewable energy. With over 16 years of experience, our team in Albuquerque specializes in the installation of solar panels and EV charging stations for both commercial and government projects throughout New Mexico. Visit www.oesolarnm.com to learn more about our services and how we can assist you in making your energy solutions more sustainable and cost-effective.
As always, feel free to reach out if you have any questions or need further assistance!