Individual, Business Electric Vehicle Charging Station Tax Credits Turn Off at Year End

Electric vehicle enthusiasts are likely familiar with the $7,500 federal tax credit for purchasing a new EV. That credit1 will eventually be phased out manufacturer by manufacturer as each one’s quota is reached, but it will still be in effect in 2014 and probably well beyond.

What won’t be around much longer is a federal tax credit for individual and business charging stations, tax credits that come to an end on Dec. 31, 2013. And if you think Congress is in the mood to extend these credits, don’t count on it. When 2014 rolls around, you just may find yourself having lost out on a lucrative, but time-restricted offer.

Electric Vehicle Owners

home charging station

Bosch Power Max Level 2 Charger.

EV owners looking to upgrade from their standard home charging station to a 240-volt fast charging station, can receive a tax credit of 30 percent (capped at $1,000) to convert by Dec. 31, 2013. This US Department of Energy program was set to expire in 2011, but it was later granted an extension.

Moreover, there is some good news here too: pricing for charging stations has come down considerably with Bosch leading the way by offering its Power Max Level 2 240V charger for under $450 reports Green Car Congress. Add several hundred dollars for installation to run new wiring and you may find yourself paying $800 or more for a new charger. However, with the federal tax credit, your final cost for this example would fall to $560 ($800 x.30 = $240; $800-$240=$560).

Of course, your savings will vary and you may not be eligible for the full amount of the tax credit, depending on your income. Your accountant can help you there.

Business Tax Credit

Businesses also have a tax credit available, one that expires on Dec. 31, 2013, as well. That credit is for up to $30,000 per property for qualified equipment installed at each location.

The credit also applies to businesses installing fueling equipment for E85 (ethanol blend), liquified petroleum gasoline (propane), natural gas, and diesel blends containing at least 20 percent biodiesel, according to the Alternative Fuels Data Center. Thus, if you are a service station owner, you will need to take action immediately to remain eligible for the tax credit.

Related Tax Forms

There are two federal tax forms related to the various EV tax credits available. For qualified plug-in electric and electric vehicles, IRS Form 8834 should be used. For both the home charging station and business/investment use part of refueling property, IRS Form 8911 (Alternative Fuel Vehicle Refueling Property Credit), should be referenced.

EV owners should also keep tabs on the various state and local incentives still available. The Plug In America website provides a state-highlighted chart that magnifies those details, including a 75 percent charging station credit for Oklahoma residents.

Los Angeles residents are eligible for a $750 rebate when they purchase and install a wall-mounted charger. That incentive is part of a Los Angeles Department of Water and Power program: “Charge Up LA! – Home, Work, and On the Go,” that includes incentives for workplace charging and public charging. The L.A. program expires on June 30, 2015, with the city setting a goal of 2,000 rebates.2


1 IRS: Plug-In Electric Drive Vehicle Credit (IRC 30D); Sept. 3, 2013.

2 Los Angeles Board of Water and Power Commissioners: LADWP Officials Announce Expanded Electric Vehicle Program: “Charge Up LA! – Home, Work and On the Go”; July 17, 2013.

See Also — Fuel Efficient Vehicles and Federal Tax Credits.

Photo courtesy of Bosch Automotive Service Solutions.

Matthew Keegan
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