June 2, 2022

Is there a tax credit for electric vehicle chargers?

JuiceBox smart EV charger on a wall at someone's home

This post has been updated in 2023 to include relevant information.

 

If you’ve considered switching to an electric vehicle, you probably know about the federal tax credit for EVs. But did you know there are also incentives and rebates for electric vehicle chargers? There are a few things every electric car owner should know like the types of electric cars, electric car battery lifespan, and the various tax credits. Read on to get all your EV charging incentive questions answered.

 

Buying an electric vehicle and an EV charging station is surprisingly easy and affordable, thanks to numerous incentives throughout the country. Rebates are available for the various aspects of EV ownership, including the vehicle itself, the charging station, charging station installation, and perks like EV utility rates, preferred parking, and free or lower-cost access to HOV lanes and toll roads.

 

The source for incentives can vary depending on where you live, the specific vehicle model you purchase, and the way the vehicle will be used, such as for personal or corporate use. The important thing is not to overlook incentives for buying the EV charging station, which is a critical component of a convenient and enjoyable EV ownership experience.

 

Federal EV charger incentives

The federal government offers a tax credit for EV charger hardware and EV charger installation costs. It covers 30% of the costs with a maximum $1,000 credit for residents and $30,000 federal tax credit for commercial installs. While it’s retroactive, meaning you can still apply for installs made as early as 2017, installations starting January 1, 2023 must meet specific tract requirements to qualify, including being located in a low-income or non-urban area.

 

However, the government is not the only source that can help pay for an EV charger. Rebates are also available from utilities so when you take advantage of all the incentives, the cost of a charging station becomes extremely affordable. Incentives are generally divided into two categories: (1) Private residential customer and (2) Commercial customer, including both retail businesses and multi-family dwellings. In some cases, the total cost is covered; in others it’s based on a percentage of the hardware and residential or commercial EV charger installation cost.

 

Residential utility rebates

U.S and Canadian utilities offer rebates to purchase residential EV charging equipment. The amounts range from about $150 up to around $1,000 per charger.

 

While many of these programs used to have end-of-year cut off dates, many get continuously extended as more and more consumers are purchasing EVs. With funding potentially being in the millions, you have a great chance of reducing the upfront cost on a new EV charger. In addition, many utilities provide rebates that also reduce or cover the cost of upgrading your home’s electrical panels and wiring for installing an EV charger.

 

Not all charging stations are created equal, and not all commercial charging stations are eligible for the same amount of incentives. For example, California’s Anaheim Public Utilities offers up to $3,000 for a networked charger, which very well could cover all the costs. But the rebate drops to $1,500 for non-networked EV charging equipment. When shopping for an EV charging station, be sure to find out if it’s eligible for the tax incentive programs in your region. Enel X Way’s JuiceBox home EV charging stations are fully networked, Level 2 smart EV charging stations that qualify for nearly every residential incentive program.

 

The key is to look for what’s available in your area via the Electric vehicle charger incentives page. Then read the fine print and contact your utility or other incentive program coordinator if you still have questions. Pay attention to special requirements, such as Level 2 chargers that are Wi-Fi enabled.

 

Commercial utility rebates

Utilities understand the importance of transitioning to electric vehicles to help lower carbon emissions. Dozens of utilities throughout the U.S. and Canada offer rebates. In many cases, these utility incentive programs require EV charging stations to be smart, networked EV charging stations such as Enel X Way’s JuiceBox ® Pro, which can help lower demand on the grid, reduce the need for grid infrastructure upgrades, and integrate renewables.

 

The dollar values for commercial rebates are usually between a few thousand dollars per Level 2 charging, and up to around $100,000 for DC fast charging stations. The exact amount available from any source can be based on whether it’s serving employees and customers in a business, or if it’s designed for a multi-family condo or apartment complex, or if it’s open to the public. Projects designed for low-income or multifamily communities often qualify for additional funds. A make-ready project that installs the foundation and infrastructure for example, Hyundai charging stations (but not the equipment), can also get funding. Additional rebates to support purchasing the station itself can come later.

 

In some cases, an incentive program will cover anywhere from 50% to 100% of the full project costs, including the purchase of an EV charging station, as well as electrical infrastructure and installation costs. For instance, in MassachusettsNational Grid’s Electric Vehicle Charging Station Program will pay for the full project cost. Similarly, Southern California Edison’s Charge Ready Program offers rebates up to 100% of project costs. The rebate percentage varies depending on if it’s located in a disadvantaged community or multi-unit dwelling, both of which increase the percentage rate.

 

Enel X Way brings commercial charging solutions

Enel X Way offers the most efficient EV charging stations. The Juicebox EV charging stations can be installed at both your home or commercial building to ensure you have the quickest charge at a low cost. Whether it’s a Tesla charger or Nissan charger, for the most energy-efficient charge, level 2 charging is recommended because it’s better for your EV’s battery life. Level 2 charging stations use a 240-volt connection to quickly power your car.

 

Now is the time to install on-site chargers. 87% of consumers tend to have a more positive attitude and image of a company that supports environmental or social issues. The majority of individuals in today's society are concerned about environmental and social issues, and they increasingly choose to patronize and work for businesses that share their own moral principles. This is especially true for "generation Xers" and millennials, as well as everyone who now owns or plans to buy an electric vehicle.

 

State incentives for EV chargers

Utilities are the most common and generous source of rebates for commercial EVSE installations, but state and regional authorities also offer support, such as the California Energy Commission, which operates the CALeVIP incentive program, or the Colorado Energy Office and the Regional Air Quality Council, which jointly administer the Charge Ahead Colorado program.

 

After checking for electric vehicle incentive options from your local utility, it is a good idea to search for rebates and credits via state and county sources. As with utility rebates, states and counties offer amounts ranging from a couple hundred dollars for residential charging stations—to tens of thousands of dollars for public charging locations.

 

Keep in mind that states with more aggressive climate and air quality goals usually have the most generous incentives. The top 10 states supporting EV drivers have all adopted the zero-emission vehicle (ZEV) program, and include Massachusetts, Oregon, New Jersey, Colorado, New York, Vermont, Connecticut, Maine and Washington. Many additional states, such as Nevada, Minnesota, Virginia, Pennsylvania, North Carolina and Texas have recently adopted policies supporting EVs and will likely move higher up the list of top states for EVs.

 

Every state and program have slightly different rules. For example, the Southern California Incentive Project offers rebates of up to $80,000 for purchasing and installing commercial chargers—but only in Los Angeles, Orange, Riverside and San Bernardino counties. Meanwhile, the South Coast Air Quality Management District focuses on residential charging stations. The rebates for that program are up to $250 for a residential Level 2 EV charger, with additional funds available to low-income residents.

 

Incentives from the Connecticut Department of Energy and Environmental Protection work on a percentage basis. Rebates are for 50% of project costs—up to $2,000 per unit and $4,000 per site. In Florida, the ChargeUP! Sarasota County program offers rebates to businesses, non-profits, and local governments within Sarasota County only. Installing qualified Level 2 equipment can bring a rebate equal to 50% of the cost, up to $4,000.

 

These state-based rebates are usually associated with the department of energy, environmental protection agency, or a regional air quality district. Adding those terms to state-based searches will help you find discounts and rebates for EV charging stations—on top of federal and utility sources. Remember: You can stack up the incentives for remarkable savings.

Find out which EV charging incentives are available to you

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