The eligibility criteria for federal EV charging incentives, specifically the Alternative Fuel Vehicle Refueling Property Credit (IRS Section 30C), include the following:
- Location and Use: The charging property must be used primarily in the U.S. or U.S. territories and be placed in an eligible census tract as of January 1, 2023. For personal use, the charger must be installed on property used as a main home. For business or investment use, the property must be depreciable.
- Type of Property: The incentive applies to property used for storing or dispensing clean-burning fuel or recharging electric motor vehicles. This includes charging stations for 2- and 3-wheeled electric vehicles intended for public road use and bidirectional charging equipment.
- Timing and Original Use: The property must be placed in service during the tax year claimed and have original use beginning with the taxpayer (i.e., new equipment, not used or previously owned).
- Credit Amount and Limits: For businesses, a tax credit of up to 30% of the cost, capped at $100,000 per EV charging port, is available for equipment installed between January 1, 2023, and December 31, 2032, if located in designated census tracts.
- Eligible Claimants: Both businesses and homeowners can qualify. Businesses, fleets, or tax-exempt entities purchasing EV charging infrastructure may also be eligible for this credit.
- Additional Requirements: Claimants must typically pay federal income taxes to benefit from the credit, and low-income or non-urban community residents may have additional considerations.
In summary, to qualify for the federal EV charging incentives, the charging station must be new, placed in service in a qualifying location (eligible census tract), used primarily in the U.S., and meet use-specific criteria (personal home or business). Both individuals and businesses can claim the credit, with businesses having higher credit caps per charging port under the 30C tax credit.
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