With gas prices increasing nonstop, EV cars sound like a great alternative. Still, there are fewer charging stations than gas stations. Luckily a new tax credit might change that.
What is it?
The recent Inflation Reduction Act (IRA) offers numerous clean energy incentives. This incentive helps promote renewable energy sources. To learn more about IRA, click here.
The IRA Alternative Fuel Refueling Property Tax Credit extends the EV charger tax incentive for ten more years until December 31, 2032. President Biden announced this revival in September. This plan includes a $900 billion EV charging station investment plan. It provides tax incentives for new and used electric vehicles and charging equipment. The goal is to build 100 million EV charging stations!
What are the Benefits?
Businesses that install new EV charger equipment can receive a tax credit of about 30% (with specific eligibility requirements). The tax credit per property item is a maximum of $100,000 per EV charger for business installation projects completed after 2022. Residential EV chargers can cost as little as $200 to over $1,000. Therefore installing an EV charger can receive a tax credit of 30% or up to $1,000 for hardware and installation costs.
How Does this Relate to Solar Panels?
Likewise, people can save on installing home solar panels through the Residential Clean Energy Tax credit. The IRA offers a nonrefundable tax credit of up to 30%. The tax credit includes solar panels, power cells, batteries, and other necessary solar equipment. Solar, wind, and geothermal equipment have no maximum credit limit. Additionally, click here to learn more about solar panels and their benefits.