Tax credit for EV charger install

[cvalue13]

Yeah, the IRS still needs to update their forms….plenty of time before tax filing season begins…..

I’m not clear on the intended message of your attachments?

they appear to be for a prior attempted bill that is different from the one passed this year?

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[Amps]

Plug In America held a Webinar today about the IRA and EVs. The presenters stressed that things are uncertain now. This is from their EVSE/EV slide:

● The federal tax credit for charging equipment has been extended through 2032
● For individual/residential uses, the tax credit covers 30% (up to $1,000 per unit) of the cost of the equipment
● For commercial uses, the tax credit covers 6% (up to $100,000 per unit) of the cost of the equipment
● Bidirectional charging equipment is eligible
● 2 and 3 wheeled equipment is eligible
● Starting after 2022, equipment must be placed in a low-income community or non-urban area

https://pluginamerica.org/wp-content/uploads/2022/09/IRAEVTaxCreditWebinar.pdf

 

[cvalue13]

Plug In America held a Webinar today about the IRA and EVs. The presenters stressed that things are uncertain now. This is from their EVSE/EV slide:

● The federal tax credit for charging equipment has been extended through 2032
● For individual/residential uses, the tax credit covers 30% (up to $1,000 per unit) of the cost of the equipment
● For commercial uses, the tax credit covers 6% (up to $100,000 per unit) of the cost of the equipment
● Bidirectional charging equipment is eligible
● 2 and 3 wheeled equipment is eligible
● Starting after 2022, equipment must be placed in a low-income community or non-urban area

https://pluginamerica.org/wp-content/uploads/2022/09/IRAEVTaxCreditWebinar.pdf

I’d point out that this slide appears to be a little fast and lose, and I wouldn’t take it all at face value

for just one example, I do not believe the low-income/urban requirements apply to individual/residential credits. I could be wrong here I suppose, and I’m not wandering back to the code just now, but I’m pretty sure those location requirements (as well as labor/apprentice requirements) apply only to the corporate credit of up to $100K


similarly, I think the slide is incorrect about the “6% (up to 100K)” for the corporate credit: the 6% is the floor if the project does not meet the other qualifications for the 30% (eg labor/apprentice, etc.)

Anyway, only noting this to cast some skepticism on the intended specificity of this slide from them

 

[rdr854]

Yeah, the IRS still needs to update their forms….plenty of time before tax filing season begins…..
View attachment 56127

View attachment 56128 View attachment 56129

For installations at home, am I correct that the most you can get is 30% of $1,000? For those of us with extended range Lightnings where the charge station is included, can we apply the installation costs or is it for the hardware only?

 

[jefro]

I'll take the actual IRS rule before I take an Act wording.

That is why I have to wait till filing time to get all the tax software updates.

https://www.irs.gov/pub/irs-pdf/i8911.pdf then edit what you suspect.

 

[Firestop]

I’m not clear on the intended message of your attachments?

they appear to be for a prior attempted bill that is different from the one passed this year?

Edit: You are correct @cvalue13 , I incorrectly referenced an earlier version …. Thank you for pointing that out….. My apologies to my fellow forum members…I got a little sloppy. I have corrected my previous posts to provide the proper bill references/copies. The remaining text of my posts still apply.

No intended message other to raise the visibility of the bill that was part of the IRA, and what amendments it made to the existing law. There has been a lot of conjecture on the forum to what the IRA did to this EV Charging Equipment credit, but no one had quoted the specific legislation…

It’s there for anyone to interpret what it means, though it appears to me to pretty clean and favorable for those of us who purchased and/or installed an EVSE at our homes this year.…and, in future years.

What I think really doesn’t matter, as the IRS will eventually revise their applicable rule, tax form, and form instructions providing us the final answer…..and, at that time, I might not feel as good as I do now….or, maybe I will

 

[cvalue13]

No intended message other to raise the visibility of the bill that was part of the IRA, and what amendments it made to the existing law.

ok, just to be clear because I’m confused: I was pointing out that you were not posting a bill that is part of the IRA, nor the changes it made

nonetheless, agree

For installations at home, am I correct that the most you can get is 30% of $1,000?

No, it’s 30% of cost to a max of $1000

For those of us with extended range Lightnings where the charge station is included, can we apply the installation costs or is it for the hardware only?

two good questions here, the first is whether the credit is for the charging hardware proper or also includes ancillary installation expenses (wiring, electrician costs, etc.). Really needs a tax professional experienced in 30Cto weigh in (perhaps the IRS has issued rulings/clarifications here), as on the face of the explanatory document it appears readable in either way.

second good question is how is with Lariet ERs might be able to tread the “included” FCSP. While there is not a separate line item expense for the FCSP in the $10,000 option to ER, there is a known MSRP on the unit itself. Would here again take a tax professional experienced in 30C to weigh in, as I could see this coming down to a judgment call (i.e., how’s your audit appetite?)

 

[Firestop]

ok, just to be clear because I’m confused: I was pointing out that you were not posting a bill that is part of the IRA, nor the changes it made

nonetheless, agree


No, it’s 30% of cost to a max of $1000



two good questions here, the first is whether the credit is for the charging hardware proper or also includes ancillary installation expenses (wiring, electrician costs, etc.). Really needs a tax professional experienced in 30Cto weigh in (perhaps the IRS has issued rulings/clarifications here), as on the face of the explanatory document it appears readable in either way.

second good question is how is with Lariet ERs might be able to tread the “included” FCSP. While there is not a separate line item expense for the FCSP in the $10,000 option to ER, there is a known MSRP on the unit itself. Would here again take a tax professional experienced in 30C to weigh in, as I could see this coming down to a judgment call (i.e., how’s your audit appetite?)

You are correct…I apologize for posting incorrect references/copies of the applicable pages of the bill as Enrolled. I have updated my prior posts with the proper ones.

The bill as enrolled added the date extensions as I previously noted and went further on encompassing other fuels. It also added a “prevailing wage“ provision that I will be interested In seeing how it applies.

I agree…IRS rules will tell the final story here, to be interpreted by qualified tax professional’s

 

[cvalue13]

You are correct…I apologize for posting incorrect references/copies of the applicable pages of the bill as Enrolled. I have updated my prior posts with the proper ones.

nothing to apologize for! All just stumbling through it as tax non-professionals!

 

[pc-hangover]

I'm just as confused as everyone else on this one

 

[Firestop]

Another summary/overview on this topic:

https://www.kiplinger.com/taxes/605201/federal-tax-credit-for-electric-vehicle-chargers

 

[SmokingtheMeats]

Another summary/overview on this topic:

https://www.kiplinger.com/taxes/605201/federal-tax-credit-for-electric-vehicle-chargers

And these immediately take effect?

 

[Firestop]

And these immediately take effect?

From the article, it is an extension of the credit that expired at the end of 2021, with modifications as described. Encouraging, and that is how read the bill language, but IRS guidance and tax professionals will have the final say….

 

[Carminus]

Check your state and utility for incentives. Here in NJ it seems that PSE&G may have a credit up to $1500 and the state seems to offer $250.

Im just about to start this journey so haven’t been through all the fine print, hoops and red tape yet but plan on looking into both further for my situation.

For NJ PSE&G the $1500 if you use their approved chargers which are capped at 40amps. You do need to be approved and its a $1500 credit. It only applies during off hours (aka night rate) charging. You also need to the electrician to submit their paperwork to them.

Electric Vehicle Program - PSE&G (pseg.com)

 

[DKZB]

For NJ PSE&G the $1500 if you use their approved chargers which are capped at 40amps. You do need to be approved and its a $1500 credit. It only applies during off hours (aka night rate) charging. You also need to the electrician to submit their paperwork to them.

Electric Vehicle Program - PSE&G (pseg.com)

Are you certain it’s only the “approved” chargers that qualify for the $1500?

The way I read it, that “approved charger” list is only for the $0.02/kWh off peak discount.

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