The Inflation Reduction Act (IRA) significantly expanded federal tax credits for EV charging infrastructure, introducing key changes for both residential and commercial installations:
Residential EV Charging Tax Credit
- 30% credit on hardware and installation costs, up to $1,000 per installation.
- Expanded eligibility to include bidirectional (two-way) chargers starting in 2023.
- Extended through 2032, reviving a credit that previously expired in 2021.
Commercial EV Charging Tax Credit
- Up to 30% per charger, including infrastructure upgrades and installation, with a $100,000 maximum per charger (up from the previous $30,000 per property limit).
- Labor requirements: Full 30% credit requires compliance with prevailing wage standards and apprenticeship programs. Projects not meeting these standards qualify for a 6% base credit.
- Eligibility expansion: Applies to both public and private commercial installations placed in service after December 31, 2022.
The IRA also removes per-property caps for businesses, allowing larger-scale projects to claim multiple credits. These changes aim to accelerate EV adoption by reducing upfront costs for charging infrastructure.
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