EV Charging Station Tax Credit - 2023 Changes (low-income or non-urban locations only)

[bmwhitetx]

Starting to do taxes - I installed an Emporia EVSE in 2023 and assumed I would get the 30% tax credit using Form 8911. Reading the instructions I see that beginning after 2022 (i.e., tax years 2023+), the equipment now has to be installed within an eligible census tract. Basically you need to live in a low-income or non-urban census tract. The IRS issued guidance two days ago that lists eligible census tracts. https://home.treasury.gov/news/press-releases/jy2035.

I thought it would only apply to businesses but everything I'm reading says it also applies to individuals. The link has a huge appendix of which census tracts are eligible. For 2023 you can use either the 2015 list (Appendix A) or the 2020 list (Appendix B).

The credit may be claimed by individuals for home electric vehicle charging and other refueling equipment and by businesses. The credit with respect to any single item of property is limited to $100,000 for business property, and $1,000 for personal property. ... While expanding the 30C credit, the IRA added a requirement that qualified property must be placed in service in an eligible census tract. An eligible census tract is any population census tract that is a low-income community or that is not an urban area.

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[bmwhitetx]

To find your Census tract go here and enter address:
https://geocoding.geo.census.gov/geocoder/geographies/address?form
Then scroll down to the section Census Tracts and copy the GEOID. It should be an 11-digit number. Then try to find that in the appendices listed above.

Example for The White House (the real one, not mine):

 

[RickLightning]

I thought the same as you, and the IRS has clarified that indeed it does apply to individuals, which is a change from prior years. I was shocked to find that where I live still qualifies.

Q3. If I am an individual and purchased a charger to install at my principal residence, does my principal residence need to be in an eligible census tract for the charger to potentially be eligible for the tax credit? (added January 19, 2024)
A3. Yes. The location requirement for the credit applies both to individual consumer property as well as commercial property.

 

[bmwhitetx]

Well good news (for me), my tract was not in the 2015 list but I was in the 2020 list coded as "2020 non-urban census tracts". So make sure you look at the 2020 Appendix.

EDIT: Here is an interactive map you can use instead. For me, literally across the street (houses a bit closer together), they are not eligible while I am.

https://experience.arcgis.com/experience/3f67d5e82dc64d1589714d5499196d4f/page/Page/

 

[Amps]

For me, literally across the street (houses a bit closer together), they are not eligible while I am.

Thanks. Metaphorically, I live across the street. Close, but no $900 cigar.

This saves me some tax digging that I would have done based upon a misconception. I broke down in 2023 and spent some bucks to upgrade my panel and do a long run to the garage sub-panel for a dedicated 100A charging circuit.

 

[RickLightning]

Thanks. Metaphorically, I live across the street. Close, but no $900 cigar.

This saves me some tax digging that I would have done based upon a misconception. I broke down in 2023 and spent some bucks to upgrade my panel and do a long run to the garage sub-panel for a dedicated 100A charging circuit.

Hold on. There are other tax credits. There is a tax credit to upgrade your electrical service. You would have to exclude the cost of the charger at least, but... https://www.energystar.gov/about/federal_tax_credits/electric_panel_upgrade

 

[davehu]

Starting to do taxes - I installed an Emporia EVSE in 2023 and assumed I would get the 30% tax credit using Form 8911. Reading the instructions I see that beginning after 2022 (i.e., tax years 2023+), the equipment now has to be installed within an eligible census tract. Basically you need to live in a low-income or non-urban census tract. The IRS issued guidance two days ago that lists eligible census tracts. https://home.treasury.gov/news/press-releases/jy20

THANK THANK THANK YOU for supplying that information saving all of us a lot of time reading gobbltygook lawyer language!

Question though: I bought a Lariat ER which came with a FCSP. can I deduct using the MSRP for it even though I don't have a separate receipt for it? I won't get to my taxes for a few more weeks but if someone already knows, thanks in advance for your answer.

 

[mefly2]

Thank you for posting the info!

 

[jimfigler]

Starting to do taxes - I installed an Emporia EVSE in 2023 and assumed I would get the 30% tax credit using Form 8911. Reading the instructions I see that beginning after 2022 (i.e., tax years 2023+), the equipment now has to be installed within an eligible census tract. Basically you need to live in a low-income or non-urban census tract. The IRS issued guidance two days ago that lists eligible census tracts. https://home.treasury.gov/news/press-releases/jy2035.

I thought it would only apply to businesses but everything I'm reading says it also applies to individuals. The link has a huge appendix of which census tracts are eligible. For 2023 you can use either the 2015 list (Appendix A) or the 2020 list (Appendix B).

The credit may be claimed by individuals for home electric vehicle charging and other refueling equipment and by businesses. The credit with respect to any single item of property is limited to $100,000 for business property, and $1,000 for personal property. ... While expanding the 30C credit, the IRA added a requirement that qualified property must be placed in service in an eligible census tract. An eligible census tract is any population census tract that is a low-income community or that is not an urban area.

"non-urban area" sounds pretty wide open.

 

[Zaptor]

Sweet! I did not think I qualified (for the install of my FCSP) but it appears I am in a 'non-urban' census tract. I thought it was income based, and didn't expect it but I'll take that 30% credit, please. Going to be a bounty of a tax year between buying 2 qualifying EVs (Lightning and Model Y Performance so $15k back), heat pump water heater and 3-zone ductless plus this. Might even get a little back instead of writing a check for a change

 

[bmwhitetx]

Going to be a bounty of a tax year between buying 2 qualifying EVs (Lightning and Model Y Performance so $15k back), heat pump water heater and 3-zone ductless plus this. Might even get a little back instead of writing a check for a change

In 2022, we bought two EVs and did a charger install. The credit for the charger install didn’t make it past the AMT calc. You don’t have to make a lot to be affected. The 15k credit for 2 EV’s triggered it I think. Was disappointed. May affect your other credits too.

 

[RickLightning]

THANK THANK THANK YOU for supplying that information saving all of us a lot of time reading gobbltygook lawyer language!

Question though: I bought a Lariat ER which came with a FCSP. can I deduct using the MSRP for it even though I don't have a separate receipt for it? I won't get to my taxes for a few more weeks but if someone already knows, thanks in advance for your answer.

No, since it was included with the truck. It is also not on the window sticker anyway, as I recall.

Sweet! I did not think I qualified (for the install of my FCSP) but it appears I am in a 'non-urban' census tract. I thought it was income based, and didn't expect it but I'll take that 30% credit, please. Going to be a bounty of a tax year between buying 2 qualifying EVs (Lightning and Model Y Performance so $15k back), heat pump water heater and 3-zone ductless plus this. Might even get a little back instead of writing a check for a change

The only way you will get a refund if you withheld or paid via estimated taxes more than you owe. The tax credit is non-refundable.

 

[jimfigler]

Sweet! I did not think I qualified (for the install of my FCSP) but it appears I am in a 'non-urban' census tract. I thought it was income based, and didn't expect it but I'll take that 30% credit, please. Going to be a bounty of a tax year between buying 2 qualifying EVs (Lightning and Model Y Performance so $15k back), heat pump water heater and 3-zone ductless plus this. Might even get a little back instead of writing a check for a change

The tax credit for alternative fuel (EVSE) uses the tentative minimum tax value (part 2 line 9) from the 6251 alternative minimum tax form for qualification purposes. The 2 years I tried to claim it while also claiming the $7500 vehicle credit I never qualified for alternative fuel credit because of the minimum tax value that was calculated. Last year my wife and I filed separately for other reasons, and she was able to claim the EVSE credit and I was able to claim the vehicle credit. With you claiming 2 vehicles you probably won't qualify. But maybe.

 

[Zaptor]

The tax credit for alternative fuel (EVSE) uses the tentative minimum tax value (part 2 line 9) from the 6251 alternative minimum tax form for qualification purposes. The 2 years I tried to claim it while also claiming the $7500 vehicle credit I never qualified for alternative fuel credit because of the minimum tax value that was calculated. Last year my wife and I filed separately for other reasons, and she was able to claim the EVSE credit and I was able to claim the vehicle credit. With you claiming 2 vehicles you probably won't qualify. But maybe.

Well, F***. I wish our damn tax code wasn't so complicated. I wouldn't have put off either purchase but I guess we'll see. Seems to me that if the Gov says "Buy a qualifying EV and have income under this level and we'll give you $7500!" they shouldn't be able to take it away with the fine print BS. Oh well, another day, another fifteen thousand dollars...

 

[bmwhitetx]

Well, F***. I wish our damn tax code wasn't so complicated. I wouldn't have put off either purchase but I guess we'll see. Seems to me that if the Gov says "Buy a qualifying EV and have income under this level and we'll give you $7500!" they shouldn't be able to take it away with the fine print BS. Oh well, another day, another fifteen thousand dollars...

Of course every situation is different but I was able to claim the $15K for the two EV's since I had tax liability greater that 15K (1040 line 16). But I wasn't able to claim the ~$200 credit for charger infrastructure (installing my FCSP) due to the AMT clause mentioned above.

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