The Biden administration is taking steps to clarify the process for homeowners and businesses to receive tax credits for installing electric vehicle (EV) chargers. A rule proposed by the Treasury Department aims to make credits available for each EV charger installed, with individuals eligible for up to $1,000 and businesses up to $100,000 per charger. The proposed rule, if finalized, will particularly benefit businesses looking to install multiple chargers and offset costs significantly.
John Podesta, the White House senior advisor for international climate policy, highlighted the importance of expanding charging access for EVs across various communities, from urban to rural areas. The proposal is in line with the 2022 Inflation Reduction Act, aiming to save families and businesses up to 30% on the installation costs of EV chargers.
The recent guidance builds upon a directive from Congress in the climate law to ensure that EV charger credits are accessible in low-income or non-urban areas. The Treasury Department has provided a comprehensive definition of eligible areas, covering about two-thirds of the country. The new plan focuses on individual charging ports for credits, rather than a single credit for multi-port installations.
Advocates believe that these tax credits will play a critical role in promoting EV use and reducing emissions from the transportation sector, a significant source of U.S. climate-warming emissions. Katherine GarcÃa, the director of the Sierra Club’s Clean Transportation for All program, praised the initiative, stating that it will support the transition to clean vehicles, create employment opportunities, and help achieve climate and clean-air objectives.
The 2021 bipartisan infrastructure law allocated $7.5 billion to establish a national network of 500,000 publicly available chargers by 2030, supporting President Biden’s vision to move towards electric vehicles. As of late last month, there are over 192,000 publicly available charging ports nationwide, a notable increase since Biden took office in January 2021.
The new tax credit is expected to benefit communities near warehouses, which often face vehicle pollution from gas-powered trucks. By incentivizing the installation of EV chargers, especially for commercial delivery trucks, the tax credit aims to drive the transition to cleaner vehicles. Albert Gore, executive director of the Zero Emission Transportation Association, highlighted the convenience of charging EVs while parked, without disrupting daily routines.
The proposed rule is open for public comment until mid-November, with the possibility of a public hearing upon request. Treasury has not specified when the rule will be finalized.
