Did you know that there's a tax credit for buying a charger and/or installing wiring?

[EdwinT]

so i bought my charger on Dec 30th 2022, and will be getting installation of the outlet sometime this month. so I can claim the charger on 2022 taxes and the install on 2023 taxes right? its not like claim only once?

Not sure if the charging stuff applies prior to the new year. If not I would just buy it again and return on 2022 receipt. That way you have a 2023 receipt.

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[RickLightning]

Not sure if the charging stuff applies prior to the new year. If not I would just buy it again and return on 2022 receipt. That way you have a 2023 receipt.

The tax credit is retroactive to 1/1/2022.

You must put it "in service". Buying it and having it in a box, unusable, doesn't fit that. You can buy it in 2022, get the wiring done in 2023, and claim both in 2023. You cannot claim the charger in 2022 if you can't use it.

 

[EdwinT]

The tax credit is retroactive to 1/1/2022.

You must put it "in service". Buying it and having it in a box, unusable, doesn't fit that. You can buy it in 2022, get the wiring done in 2023, and claim both in 2023. You cannot claim the charger in 2022 if you can't use it.

Oh nice! I waited just to be safe. Looks like I would’ve missed it anyway since I wouldn’t have installed it yet. So 2023 it is for me too.

Thanks!

 

[capt_ramius]

This is just for commercial installations/businesses, correct? I thought there weren’t personal/individual federal tax incentives for hardware installations (at least at federal income tax, your state may differ).

 

[queuewho]

I claimed 30% of the price of my Grizzl-E Duo I bought in 2021 on my taxes last April. Pretty great benefit if you ask me. Installed it myself.

 

[RickLightning]

This is just for commercial installations/businesses, correct? I thought there weren’t personal/individual federal tax incentives for hardware installations (at least at federal income tax, your state may differ).

No. Discussed several times in the threads.

Federal credit expired 12/31/21. IRA renewed it effective 8/16/22, retroactive to 1/1/22.

 

[brewski]

Why would it not be the retail price of the charger since that cost is baked into the MSRP before options and destination charge? Ford did not gibe us the mobile charger or the Charge Station Pro for free out of the kindness of its heart.

I don't like screwing with the IRS. I recently got a letter from the IRS for the $1 tax owed...but $19,000 penalty for late filing.
I called, sat on hold a while, then got a person.
After discussing the situation with the IRS person, who was not in a good mood, we came to the conclusion that the IRS made an error.
BUT - even with their error, I have to go download a form to make a claim on this error.
About 3 hours of my time spent on their error.
I wouldn't be playing in this grey area myself.

 

[RickLightning]

I don't like screwing with the IRS. I recently got a letter from the IRS for the $1 tax owed...but $19,000 penalty for late filing.
I called, sat on hold a while, then got a person.
After discussing the situation with the IRS person, who was not in a good mood, we came to the conclusion that the IRS made an error.
BUT - even with their error, I have to go download a form to make a claim on this error.
About 3 hours of my time spent on their error.
I wouldn't be playing in this grey area myself.

It's not a grey area. You can't claim it if the cost is not itemized.

 

[brewski]

It's not a grey area. You can't claim it if the cost is not itemized.

Ok.

 

[pjorg]

I have respect for the acumen of many of you that have posted on this thread, as it relates to tax matters.

That said, I have not been able to find an official source that indicates the 30C credit extension applies to charging apparatus put into service between January 1, 2022 and December 31, 2022, or that it’s not limited to certain census tracts.

Does anyone have links? IRS forms and instructions seem not to have been revised since January 2022.

 

[pjorg]

Does anyone have links? IRS forms and instructions seem not to have been revised since January 2022.

Apologies; I did not read this entire thread closely enough. The answer to my question is right here.

Found the draft for the updated version. Don't see a distinct differentiation for census tract eligibility.

"Property placed in service after 2022 must be located in an eligible census tract."

https://www.irs.gov/pub/irs-dft/i8911--dft.pdf

 

[RickLightning]

I have respect for the acumen of many of you that have posted on this thread, as it relates to tax matters.

That said, I have not been able to find an official source that indicates the 30C credit extension applies to charging apparatus put into service between January 1, 2022 and December 31, 2022, or that it’s not limited to certain census tracts.

Does anyone have links? IRS forms and instructions seem not to have been revised since January 2022.

Then don't claim it. Or go read the IRA. Or wait for the 2022 form and instructions expected later this month.

 

[jimfigler]

FYI: This is taken from recent TurboTax update about the refueling credit. It mentions installation and permit fees are included.

Charging stations for plug-in electric vehicles qualify for this credit.
You can claim this credit if you installed a charging or refueling station at your home.
You can claim this credit if you installed a charging or refueling station at your business location.

Credit Requirements
The following conditions must be met to qualify for this credit:
- You started using the station in the current tax year (2022).
- You are the original owner of the station.
- The station is used primarily in the United States.
- The station is installed at a residential or business location.

Eligible Expenses to Claim
The cost of the charging or fueling station include:
- The amount you paid to purchase the station
- The fees you paid to have the station installed in your home or business location (i.e., electrician fees).
- Permit fees
- Any city, local, or state fees that you were required to pay in order to be able to install your station.

Example: You purchased your charging station for $850, paid an electrician $2,000 for installation and hardware. You would enter total cost as $2,850 for your station.

Limitations of this credit - Personal Use
- If your credit is bigger than what you owe in taxes, the taxes you owe are reduced to zero, and the rest of your credit is lost.

Example: If you owe $500 in taxes, and you receive a credit of $1,000, the tax you owe is reduced to zero, and the remaining $500 is lost. You won't receive a refund for the remaining $500.

- If you pay alternative minimum tax (AMT) you will not be able to claim this credit. If you are close to paying AMT, this credit may be limited by your tentative minimum tax as calculated on Form 6251, Alternative Minimum Tax - Individuals, line 33.

Limitations of this credit - Business Use
- The business portion of the credit is part of Form 3800, General Business Credit, so any unused amount of the credit is not lost, but is eligible for the carryback/carryforward provisions of the general business credit.

- If you use this station for business and claim a depreciation deduction, you must subtract the credit amount when TurboTax asks you to enter the cost of the station in the Business (Schedule C) or Farm section of the program.

Example: You paid $5,000 to purchase and install your station at your business location. The station is eligible for a credit of $1,500. To claim the depreciation deduction, you must subtract this credit amount when entering the cost of the station in the Business or Farm section of TurboTax.

Credit Recapture
You may have to recapture some or all of the credit if the station no longer qualifies for the credit.

This credit is claimed on Form 8911.

 

[capt_ramius]

Would a transfer switch or Home Integration System and associated installation expenses also count?

 

[RickLightning]

Bi-directional equipment is included, yes. But once you exceed $3,333.33 in costs, credit is used up.

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