Electric vehicles (EVs) are growing in popularity, especially with increased options from manufacturers, improvements in technology and range, rebates and incentives, and savings in gas. The Inflation Reduction Act (IRA) and state-specific incentives also provide options for you to get money back if you install EVSE (electric vehicle supply equipment) aka a home EV charger. According to a JD Power survey in 2021, 88 percent of EV owners say they charge their vehicle at home “often” or “always” – so, if you’re looking to buy an EV and install a charger at home, it’s important to stay to-do-date on the latest rebates and incentives!
Disclaimer: this article is intended to provide an informational overview of tax credit available for interested homeowners. It’s not intended to serve as official financial or tax guidance. Readers interested in claiming tax credits should seek advice from a licensed professional, accountant, or CPA.
Key takeaways
- The Inflation Reduction Act (IRA) revives a tax credit that previously expired at the end of 2021 for installing a home EV charger.
- This means you can claim 30 percent of the EV charger’s cost (up to $1,000) on your 2022 taxes if you install (or installed) EVSE at your home anytime in 2022.
- Beginning in 2023, more restrictions around location and income will exist to claim this tax credit.
- Some utilities also offer additional rebates and incentives for charging your EV at home.
- Power your EV with clean energy by going solar through EnergySage!
In this article
EV charger tax credits in 2022
You don’t have to buy a special EV charger to charge your EV, but many EV owners choose to install a home EV charger because it’s much quicker to charge with a Level 2 home EV charger than using a regular outlet or Level 1 charger. To learn more about EV charging levels, check out this article.
What EV charger incentives are available?
The IRA revived the Alternative Fuel Vehicle Refueling Property Credit, which originally ended December 31, 2021. Now, any EV charger installed at a home at any point in 2022 is eligible for the tax credit, equal to 30 percent of your home EV charger installation costs (up to $1,000). The tax credit applies to the equipment (the charger itself) and any labor or other costs associated with the installation.
Businesses installing EV chargers may also be eligible for 30 percent of EV charger installation cost (up to $30,000) for chargers installed in 2022.
How to claim the EV charger tax credit
Just like the previous credit, you’ll need to claim the credit on your taxes when you file for 2022. Previously, you filed the credit using IRS Form 8911, but there may be additional guidance provided or an additional form since the current documents don’t reflect the latest changes with the IRA. So, be sure to check with your CPA or confirm if you’re using a tax filing software.
EV charger tax credits in 2023: what changes?
In 2023, the Alternative Fuel Infrastructure Tax Credit changes things a bit, adding some stipulations that may mean you won’t be eligible anymore depending on where you live. If you purchase and install a home EV charger prior to December 31, 2032, you may receive a 30 percent tax credit of up to $1,000.
However, to get this credit from 2023 – 2032, your home EV charger must be installed in a location that meets one of these two census tract requirements:
- It’s located in a population census tract where the poverty rate is at least 20 percent
- Or, it’s located in a metropolitan or non-metropolitan area census tract where the median family income is less than 80 percent of the state median family income level
If you don’t know the census tract information in your area, you can find out details using the interactive tools on the U.S, Census Bureau website. For example, if you live in Russellville, Alabama in Franklin County, you can see your median household income is $40,448 whereas the state’s median income is $53,958. This means your area’s median household income is 74.9 percent of your state’s household income, so you would still qualify for the tax credit. However, if you live in Birmingham, Alabama in Jefferson County, your median household income is $57,802 so you wouldn’t qualify for it compared to the state’s median.
Several credits in the IRA are now income and location based, so you’ll want to review this information to understand what you’ll qualify for when it comes to other EV credits and clean energy upgrades.
The bottom line is that you may miss out on this incentive if your location makes you ineligible in 2023, so it could benefit you to go ahead and purchase and install your EV charger this year.
Other ways to save on home EV charging
There are some additional ways you may be able to save on installing your own home EV charging, including manufacturer discounts and utility-backed rebates.
EV charger manufacturer discounts
Some home EV charger manufacturers offer occasional sales or discounts like Enel X Way’s JuiceBox charger or Lectron’s EV chargers. You’ll just have to keep an eye out on their websites for any special pricing – or, you might receive special offers when signing up for emails.
Utility-specific EV charger savings
While there aren’t currently any state-specific incentives or rebates available for installing your home EV charger, you might be eligible for utility savings programs after your installation. For example, National Grid Massachusetts recently launched the Smart Charge MA program and app, which offers customers with certain EVs and home EV chargers special electricity rates.
The app helps you track all EV charging, estimate energy bill costs, and keep up with off-peak rebates. National Grid Massachusetts also offers a $50 enrollment incentive and off-peak charging rebates that you earn as an on-bill credit the following month (this enrollment bonus may only be offered for a limited time and rates may vary).
Many other utilities throughout the U.S. also offer time-of-use (TOU) rates or special EV charging rates and programs, so make sure to check what yours offers.
Power your EV with solar
There’s sometimes a misconception that home EV charging is expensive. However, it’s substantially less expensive in most areas than buying gasoline – especially if you’re using solar to power your charging. Your exact comparison depends on the cost of electricity in your area and the make and model of EV you own (since various models have different ranges).
One of the best long-term solutions to lower your home EV charging costs is to go solar. You can use the EnergySage Marketplace to compare several quotes from pre-screened installers, helping you find a system that fits your needs at the right price. If you’re planning to charge an EV at home, make sure to add a note to your profile so installers can right size your solar system to sufficiently power your EV.