As the electric vehicle (EV) market continues to expand, the need for robust EV charging infrastructure becomes increasingly critical. For individuals, businesses, and municipalities looking to invest in EV charging stations, understanding available grants and funding support is essential. This article outlines key tax credits, rebates, and grants across various states in the U.S. to help stakeholders make informed decisions.
Key insights
- Variability: The landscape of state incentives is diverse. Some states have robust programs, while others offer little to no support. It’s crucial to research specific eligibility criteria and application processes in your area.
- Exclusions: Many states do not provide tax credits specifically for EV charging infrastructure but may offer rebates or grants. Furthermore, utility-specific rebates are not included unless mandated by state law.
- Legislative Changes: Incentives can change due to new legislation, program expirations, or the introduction of new initiatives. Stakeholders should stay informed about the latest developments to maximize funding opportunities.
Federal Incentives
Before diving into state-specific programs, it's important to recognize the federal support available:
- Alternative Fuel Vehicle Refueling Property Credit (IRC 30C): This federal tax credit allows for up to 30% of the cost of purchasing and installing EV charging equipment.
- The maximum credits are $1,000 for residential installations and $100,000 per charging port for commercial installations.
- This incentive is effective through December 31, 2032, with additional bonuses for prevailing wage and apprenticeship programs.
State-Specific Incentives
State incentives can vary widely – some states provide direct tax credits, while others offer rebates or grants. Below is a state-by-state overview of available funding options for EV charging infrastructure:
Alabama
- EV Charger Grants: Managed by the Alabama Department of Economic and Community Affairs (ADECA), grants are available for light-duty EV chargers.
- Tax Credit: No specific state income tax credit exists.
California
- Rebate Programs: Significant rebates are available, including the California Electric Vehicle Infrastructure Project (CALeVIP), which offers rebates up to 100% of project costs for DC fast chargers.
- Sales Tax Exemption: Applicable to zero-emission transit buses and related infrastructure for eligible public agencies.
Colorado
- EV Charging Station Income Tax Credit: Up to 30% of the cost for purchasing and installing EV charging stations, with a maximum of $7,500 for individuals and $50,000 for businesses.
- Rebates: Additional grants up to $50,000 are available for qualified projects.
Connecticut
- Rebates: The CHEAPR program offers rebates for charging infrastructure through utilities, with amounts up to $500 for Level 2 chargers.
Florida
- Tax Credit: No specific state tax credits for EV charging infrastructure.
Georgia
- Tax Credit: Businesses can claim a 10% tax credit on the cost of EV charging station installation, up to $2,500.
New Mexico
- Sustainable Building Tax Credit: Offers tax credits for EV make-ready infrastructure, with varying amounts for residential and commercial properties.
New York
- EV Charging Station Income Tax Credit: Provides up to 50% of the cost of installing EV charging stations for businesses, capped at $5,000 per station.
Oklahoma
- Tax Credit: For tax years beginning before December 31, 2028, a tax credit is available for up to 45% of the cost of installing commercial alternative fueling infrastructure. Eligible alternative fuels include natural gas, propane, hydrogen, and electricity. The infrastructure must be new and not previously installed or used to fuel alternative fuel vehicles.
Washington
- Tax Credit: Businesses can receive up to 50% of the cost for purchasing and installing alternative fueling infrastructure, including EV charging stations.
Vermont
- Rebates: The Vermont Electric Vehicle Incentive Program offers incentives for EV charging stations.
- Infrastructure Incentive: The Vermont State Infrastructure Bank provides loans up to $100,000 for municipalities and non-profits.
Key take away
Investing in EV charging infrastructure is essential for supporting the growing electric vehicle market. With various funding options available at both federal and state levels, potential investors should carefully consider their options. Whether through tax credits, rebates, or grants, there are resources designed to offset the costs of installation and operation. By leveraging these incentives, stakeholders can contribute to a cleaner, more sustainable future while enhancing their business or community's infrastructure.
Konect Funding Consulting
Konect operates a comprehensive screen of all funding, grants and tax incentives on offer for EV charging. If you are interested, please contact us and we’ll help you fund the funding source that’s right for you.
For detailed and updated information, such as insights on Utility Funding click here, learn about what’s next for NEVI, or find out about Konect’s EV charging ecosystem.