The types of EV charging equipment eligible for the tax credit include:
- Home EV Chargers: For individuals installing an EV charger at their principal residence, the tax credit covers 30% of the cost of the charging port, essential components, and labor for installation, up to $1,000.
- Business and Commercial EV Chargers: Businesses can receive a tax credit for installing new EV charging equipment. As of January 1, 2023, the credit is 6% of the cost for depreciable property, with a maximum of $100,000 per item. However, prior to 2023, the credit could be up to 30% of equipment and installation costs. Additionally, businesses must meet labor and construction requirements to qualify for the full incentive.
- Bidirectional Charging Equipment: Starting in 2023, this includes two-way chargers for both residential and commercial installations.
- Two- and Three-Wheeled Electric Vehicle Chargers: Also eligible, specifically for use on public roads.
These credits are part of the Alternative Fuel Vehicle Refueling Property Credit, which has been extended through December 31, 2032, under the Inflation Reduction Act.
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