Retail Parking Lot With EV Chargers Installed Using Commercial EV Charging Station Tax Credits
 

Use Commercial EV Charging Station Tax Credits To Lower Installation Costs

Passed in August 2022, the Inflation Reduction Act was a sweeping piece of legislation that included multiple green energy based tax credits and incentives. One of the included tax credits focused specifically on commercial EV charging stations. These credits are specifically designed to lower commercial EV charging station installation costs. While commercial EV charging station tax credits existed before the Inflation Reduction Act, the bill extended and expanded existing credits. Two of the biggest changes include:
 

  • Increasing credits from 6% of costs to 30% of costs
  • Increasing the cap on rebates from $30,000 to $100,000

 
Considering commercial EV charging station installation costs can range from $10,000 to $50,000+, these increases are a major win for property managers. It is important to note only projects completed after December 31, 2022 are eligible for the 30% credit. Click here to locate an EV charging station installer to provide a few quote at your property or keep reading to learn more about commercial EV charging station tax credits.

Eligibility For Commercial EV Charging Station Tax Credits

Not all properties and commercial EV charging station projects are eligible for tax credits. There are two requirements to be eligible for the maximum 30% credit. To be eligible, a property has to be located on approved “census tracts”. These are specific low-income and non-urban areas defined by the 2020 census. The final results of the 2020 census, including these designations, will be released in December 2022. Property managers can use the U.S. Census Bureau website to check if their property falls in an eligible area.

The Inflation Reduction Act also requires property managers pay prevailing wages. This requirement is focused on creating high paying jobs in the green energy sector. This is usually not an issue if a property manager uses a union electrical contractor to install EV chargers at their property.

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Additional Commercial EV Charging Station Tax Credits And Incentives

While only certain properties qualify for the full commercial EV charging station tax credit, there are many state and local tax credits and incentives for installing EV charging stations. Property managers should work with an electrical contractor who is familiar with these programs in order to maximize their savings. For example, the Maryland Energy Administration offers a commercial EV charging station rebate capped at 40% of project costs or $4,000, whichever is lower. Combining this type of rebate, with $9,000 in savings from Inflation Reduction Act tax credits, a property could save $13,000 on a $30,000 project!

Many utility providers also offer incentives to install commercial EV charging stations. In Maryland, PEPCO offers multifamily properties a $15,000 rebate to install Level 2 Smart Charging Stations. The rebate covers 2 stations. Let’s assume the project above was installing the 4 Level 2 stations at an apartment building. A property manager could leverage tax credits and utility incentives to complete a $60,000 EV charging station project for just $17,000!

 

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Benefits Of Installing Commercial EV Charging Stations

Property managers should not focus exclusively on tax incentives when considering an EV charging station project. This is because there are numerous benefits to installing commercial EV charging stations. Additional benefits, beyond tax credits, include:
 

  • Attracting high income tenants to multifamily properties
  • Earning LEED Certification Credits
  • Demonstrating a commitment to sustainability
  • Increasing traffic to retail shopping centers
  • Potential to earn income from paid stations

 
Installing commercial EV charging stations, especially in large quantities, is a significant capital project. Given the many tangible and intangible benefits, plus federal, state, local, and utility based incentives, they are certainly worth the investment. Need help with an EV charging station project at your property or facility? Click here to have Property Manager Insider connect you with a local contractor to provide a free quote!

 

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