EV charging & purchase incentives resources

The Inflation Reduction Act (IRA) was signed into law on August 16, 2022, and benefits national commercial transportation electrification. The legislation includes new business tax benefits for EV charging stations, clean commercial E-mobility vehicles and equipment purchases. 

There are opportunities for commercial fleet vehicles of any size and type and any size of business, from small business owners to large companies. The tax break is available for small to large businesses that install EV charging stations and buy electric cars, light, medium to heavy-duty trucks, or mobile machinery, including construction, manufacturing, processing, farming, mining, drilling, or timbering.

The new provisions could make owning an EV vehicle cheaper than a diesel-powered one.

The federal incentives are steps to help close the gap between the cost of a new EV versus an ICE vehicle. Clean commercial fleet Programs are developing with states and localities, so check with yours for other possible rebates and incentives. 

 
With any legislation, there are requirements and calculations for the new incentives, so check with your tax advisor to see if you qualify. Let's take a look at some of the opportunities. 

EV Charging station installation

There are expanded incentives for installing charging stations in the Alternative Fuel Refueling Property Credit – Section 30C.

• The new law increases the maximum credit from $30,000  to $100,000 per location. 
• The time frame extends to 2032 and is available retroactively to the beginning of 2022, closing the time gap for installation credits left by the expired bill. 
• There are some qualifying details around the property location. The location must be in a "qualified census tract," areas impacted by pollution, low income, or lack of charging infrastructure.
• There is a bonus credit available if wage and apprenticeship requirements are met. 
• With depreciable property, the base credit is six percent of the wage, and if apprenticeship requirements are met, the credit increases to 30 percent. 

Commercial clean vehicle purchases

The Commercial Clean Vehicle Tax Credit- Section 45W, provides new credits for qualified commercial clean vehicles. 

• Business owners can get the tax credit for new vehicles purchased after December 31, 2022, through 2032. 
• The tax break is available to businesses that buy electric cars, trucks, or mobile machinery, including construction, manufacturing, processing, farming, mining, drilling, or timbering. 
• The maximum credit is $7,500 for vehicles with a gross weight rating of under 14,000 pounds and $40,000 for all others. 
• The 14,000-pound demarcation line includes commercial vehicles that are Class 4 and above, including medium and heavy-duty trucks and buses.
• The credit may not exceed the lesser of 30% of the purchase price or the incremental cost of the vehicle over a comparable powered gas or diesel engine.
• For hybrid vehicles, the credit is up to 15 percent of the cost of a hybrid versus a comparable internal combustion engine (ICE) vehicle. 

The credits include calculations, and the requirements should be reviewed with a tax professional. 

The rules and policies may change, check with your tax advisor to see if you qualify for these new incentives.

Your Powerfull Recharge representative will help you plan and prepare EV equipment charging solutions!