EV Charging Incentives for Businesses

Federal Tax Incentives for Business 

The Inflation Reduction Act extends the Alternative Fuel Infrastructure Tax Credit (Section 30C) for the installation of EV charging infrastructure at their facilities. The Act increases the previously allowable maximum tax credit from $30,000 up to $100,000 for projects completed after Dec. 31, 2022 (projects completed before then would still be subject to the $30,000 cap).

Note that with the greatly increased credit for charging projects, these stations must be installed in locations that meet census tract requirements set forth by Congress (currently, (1) a population census tract where the poverty rate is at least 20%; or (2) metropolitan and non-metropolitan area census tract where the median family income is less than 80% of the state medium family income level). The Act also requires that eligible projects meet apprenticeships and prevailing wage requirements. Thinking long-term, the Act also allows for bi-directional charging equipment (effectively allowing EVs to be used as a means of providing stored electricity to serve the grid).

Grant Programs for Clean Vehicles

Both the Infrastructure Investment and Jobs Act and the Inflation Reduction Act have created grants programs that offer funds for zero-emissions fleet vehicles. See below for the key programs:

• $1 Billion appropriated for an EPA grant/rebate program for clean heavy-duty vehicles
  • $400 million set aside to replace vehicles serving communities in non-attainment areas for any pollutant.​
  • Up to 100% of the cost for Class 6 or Class 7 heavy-duty vehicles​
  • Eligible recipients: state and municipal gov’ts, tribes, non-profit school associations
• $3 Billion for zero-emission port equipment and technology and GHG reduction planning for ports
  • $750 million set aside for non-attainment areas (for any pollutant)
  • Eligible recipients: Port authorities, agency with jurisdiction over port, private entities within port
• $5 billion EPA Clean School Bus Program
  • Provides grants to K-12 school districts to replace diesel buses with electric, CNG, or propane school bus options.
  • Eligible recipients: state or local governments, eligible contractors, non-profit school transportation associations
  • Can provide up to 100% of the cost of a replacement bus
• $5 billion Low or No Emissions Bus Grants
  • Provides capital funding to purchase or replace bus fleets with low or zero-emissions buses.
  • Eligible recipients: states, cities, counties, special districts, tribal governments

There are currently no utility incentives for EV charging.