The Biden administration is moving to clarify how homeowners and businesses can receive lucrative tax credits for installing electric vehicle chargers.
A rule proposed Wednesday by the Treasury Department would make credits worth up to $1,000 for individuals and $100,000 for businesses available for each EV charger that is installed. If finalized, the new rule would be especially valuable to businesses that plan to install multiple chargers and would be eligible for significant credits to offset the expense.
"In order to help more Americans go electric, we need to make sure they can charge their EVs where they live, work and shop - from inner-city neighborhoods to rural areas," said John Podesta, White House senior advisor for international climate policy. The 2022 Inflation Reduction Act is expanding charging access by saving families and businesses up to 30% off the cost of installing EV chargers, he said.
The proposal announced Wednesday follows guidance issued in January that made tax credits for installing EV chargers available in about two-thirds of the country. The guidance responded to a directive from Congress in the climate law to ensure that the credits for EV chargers are limited to low-income or non-urban areas.
Treasury chose an expansive definition for census tracts covered by those terms to include about two-thirds of the country. The guidance issued in January did not address exactly which parts of an EV charging installation are eligible for the credit. The plan announced Wednesday again opts for an expansive definition - targeting individual charging ports rather than a single credit for a multi-port installation.
